A conventional loan is a mortgage that is not guaranteed or insured by any government agency. The most common forms of conventional home financing include purchasing or refinancing a primary residence, second home, or investment property.
Conventional Loan Types:
Fixed Rate Mortgage
A fixed interest rate mortgage is a loan where the interest rate doesn't fluctuate during the term of the loan, which means the payment will not change during the term of the loan either.
Adjustable Rate Mortgage (ARM)
An Adjustable Rate Mortgage generally offers a lower rate and monthly payments in the early years of the loan with rates adjusting in later years, which means the payment will likely change during the term of the loan. Annual and lifetime rate caps are applied to help protect individuals with an Adjustable Rate Mortgage.
Please contact one of our local mortgage experts to apply for or discuss conventional loan options.