Conventional Loan programs give buyers freedom from property restrictions and fewer underwriting restrictions than federal loan programs. Plus, those who can’t afford a 20% down payment have the option to qualify for a Conventional Loan with a much lower down payment.
At Union Home Mortgage Corp, we offer borrowers a variety of Conventional Loans to choose from.
Types of Conventional Loans
- Fixed Rate Mortgages: The traditional 30-year fixed-rate mortgage has a constant interest rate and monthly payments that never change. This may be a good choice if you plan to stay in your home for seven years or longer. If you plan to move within seven years, then adjustable-rate loans are usually cheaper. On the other hand, the 15-year fixed rate mortgage is fully amortized over a 15-year period and features constant monthly payments. It offers all the advantages of the 30-year loan, plus a lower interest rate. The disadvantage is that, with a 15-year loan, you commit to a shorter period of time to pay off your home and often have a higher monthly payment.
- ARMs: Adjustable Rate Mortgages (ARMs) are designed for borrowers who don’t expect to be in a home for a long period of time. These adjustable-rate mortgages are fixed for a period of time and can adjust thereafter. The increasingly popular Hybrid ARMs (also called 3/1, 5/1 or 7/1) can offer the best of both worlds. These loans have lower interest rates (like ARMs) and a fixed payment for a longer period of time than most adjustable-rate loans. These loans can also be a good choice for people who expect to move (or refinance) before or shortly after the adjustment occurs.
At Union Home Mortgage Corp, we understand that buying a home is a very important decision. Before getting bogged down in the different loan programs available, reach out to one of our knowledgeable Loan Officers to schedule a free consultation. We are here to help!