What is a Conventional Fixed-Rate Mortgage?
Planning on growing roots in your first or new home? Let a conventional fixed-rate mortgage open the doors for you. Get in your home and stack up your equity with this traditional mortgage.
How do I get a conventional fixed-rate mortgage?
The conventional fixed-rate mortgage is a great option for those who plan to settle down and grow roots. Are you a first time home buyer? Budgeting can be tough, but a fixed-rate loan can help you keep your finances on track each month! A conventional fixed-rate mortgage can also be used if you’re interested in a vacation home or investment property. Are you ready to get the digital mortgage process started? Keep reading to learn more.
Benefits of the Conventional Fixed-Rate Mortgage:
Like consistency? Ease your mind knowing your monthly principal and interest payments won’t change. You’ll pay the same principal and interest amount each month. Only your taxes, insurance and mortgage insurance - if applicable - might vary.
Choose whichever length of term makes you the most comfortable. vLoan offers 10-, 15-, 20-, and 30-year conventional fixed-rate mortgages.
Depending on your financial situation, you can put as little as 3% down.
Let’s dig a little deeper – who is eligible for the conventional fixed-rate mortgage:
While this is one of the most popular loans, it’s not for everyone. See if you’re the type of person that should consider this loan:
- You have a stable financial history and can provide us with your past income statements and tax documents.
- You have enough in savings for a down payment, even if it may be as little as 3% down.
- Still not sure if you qualify? Call a mortgage advisor today at 1-844-77-vLoan to help match you up with your perfect fit.
Requirements and facts for the conventional fixed-rate mortgages:
- Depending on which term you chose, your interest rate will vary. You will pay the least amount in interest with a 10-year term compared to a 30-year term. On the other side of the coin, your monthly payments will be highest with the 10-year term and the lowest with a 30-year fixed-rate conventional mortgage.
- Once you choose your term, your interest rate will stay the same throughout your entire mortgage term, unless you chose to refinance to a lower rate.
- If you aren’t happy with your current mortgage, whether it is an ARM or another loan, we would be happy to help you refinance into a fixed-rate conventional mortgage.
- Conventional mortgages often require less documentation compared to other loan types, such as Jumbo or USDA.
- You can prepay your mortgage without penalties.
The nitty-gritty about conventional fixed-rate mortgages:
- Is budgeting your thing? Then this loan may be right for you. Your principal and interest payment amounts stay the same. Consistency is key!
- Want to save interest? Choose a shorter loan term to pay off your mortgage sooner, within 10 or 15 years.
- Want to save on your monthly payments? Choose a longer term mortgage to spread out the payment over 20 or 30 years.