ABC's of Real Estate - CONVENTIONAL LOANS
Everything you need to know!
Conventional Loans - everything you NEED to know
First of all, YES. It was windy that day! But a beautiful day in Orlando!
One of the many loans out in the Real Estate world, conventional loans offer the most attractive rates available in the market. They offer a great interest rate and, if you put down 20%, NO Private Mortgage Insurance or PMI. PMI can add $80-200 to your monthly mortgage amount. Good thing is that IF you put down LESS than 20%, the PMI will eventually go away when you pay off 20% of the loan amount. Check with your loan company to find out how much you owe and when you will have your PMI removed.
I work closely with my good friend, Patrick Brill with Alterra Home Loans. He has helped many of my clients and friends with finding a great home loan that works best for their needs, as well as refinancing your current home loan. With today’s rates, I would strongly urge you to contact Patrick about a refinance to take advantage of the extremely low interest rates.
A conventional mortgage is a home loan that isn’t backed by a government agency, such as the FHA or VA. Conventional mortgages often meet the down payment and income requirements set by Fannie Mae and Freddie Mac, and they often conform to the loan limits set by the Federal Housing Finance Administration (FHFA). Conventional loan borrowers who put at least 20% down don’t have to pay for mortgage insurance, which is typically required with lower down payments or government-backed loans. (*NerdWallet)
Conventional mortgage borrowers typically make larger down payments than FHA borrowers, and they tend to have a more secure financial standing and are less likely to default. A larger down payment means lower monthly payments.
Requirements vary from lender to lender, but 620 is typically the minimum credit score needed to obtain a conventional loan, and 740 is the minimum score you need to get a good mortgage rate. The term of a conventional mortgage is usually 15, 20 or 30 years.
Matt Schnitker is a Realtor® in Orlando, Florida with BEX Realty. I'm a proud husband and father of two, self-professed tech nerd, and bona fide food fanatic. My wife and I are both Real Estate nerds and we love looking at Real Estate, so of course, we got into the business together. 😆
If you have any questions or would like some more information on anything you see in my videos (or anything else) please email me at matts@BEXRealty.com or call my team at 407.415.1015
We have a website with tons of blogs and videos and you can search for homes for sale: www.SoldBySchnitker.com
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