What are conventional loan? Usually the Best Mortgage you can obtain!
The conventional loan limit for 2021 is $548,250 for a single family home this loan can be with as little as 3% down. Though, Fannie Mae and Freddie Mac have designated high-cost areas where limits are higher. … Standard conventional loan limits: 1-unit home: $548,250. Call for higher limits based on the County the property resides in.
Conventional loans are thru the following government agencies. These loans are subsidized so we all get lower rates.
- Fannie Mae (FNMA)
What is a Fixed-Rate Mortgage
A fixed-rate mortgage is a mortgage loan that has a fixed interest rate for the entire term of the loan. Generally, lenders can offer fixed-rate monthly installment loans being one of the most popular mortgage product offerings.
BREAKING DOWN Fixed-Rate Mortgage
Fixed-rate mortgages are generally offered as amortized loans with installment payments however non-amortizing loans can also be issued with a fixed-rate. There are varying risks involved for both borrowers and lenders in fixed-rate mortgage loans. These risks are usually centered around the interest rate environment. In a time of rising rates, a fixed-rate mortgage will have lower risk for a borrower and higher risk for a lender. If rates are rising, borrowers typically seek to lock in lower rates of interest to save on interest rate costs over time. When rates are rising interest rate risk is higher for lenders since they have foregone profits from issuing fixed-rate mortgage loans that could be earning higher interest over time in a variable rate scenario.
- Freddie Mac (FHLMC)
Federal Home Loan Mortgage Corporation (Freddie Mac)
A private corporation founded by Congress, the Federal Home Loan Mortgage corporation’s mission is to promote stability and affordability in the housing market by purchasing mortgages from banks and other loan makers. The corporation is currently under conservatorship, under the direction of the Federal Housing Finance Agency.
- FHA – An FHA loan is a mortgage that’s insured by the Federal Housing Administration (FHA). … However, borrowers must pay mortgage insurance premiums, which protects the lender if a borrower defaults. Borrowers can qualify for an FHA loan with a down payment as little as 3.5% for a credit score of 580 or higher.
These loans allow for some really great benefits:
- Lower rates
- Easier to qualify
- Low down payments, as low as 3% Down!
- You don’t have to put 20% down!
Conventional Loans – 43 years serving the community helping people thru the steps to obtain that home loan!
Conventional loans are thru the Gov’t agencies called: Fannie Mae & Freddie Mac.
If by some reason you do not qualify for a conventional Mortgage loan, we have many other Mortgages to assist you to purchase or refinance a home.
Questions are welcome, call Steve 805-374-6000
