Conventional Home Loans

Conventional Mortgages are  loans that are not guaranteed or insured by the federal government. These loans may follow the guidelines of the Government Sponsored Enterprises (GSEs) such as Fannie Mae and Freddie Mac, in which case they are “conforming” loans. When conventional loans do not meet GSE terms and conditions, they are considered “non-conforming.”

Conventional loans offer borrowers many options, allowing more freedom in choosing the length of the loan period, fixed or adjustable interest rates, and the ability to borrow greater amounts of money without the restriction of generic loan amount caps. In addition, potential borrowers who want to avoid purchasing mortgage insurance should consider conventional mortgage loans.

If you are escrowing for property taxes and insurance, payments can increase if your taxes or insurance increase.  With Adjustable Rate Mortgage loans, the rate is variable and may increase or decrease every year after the initial fixed rate period based on changes to an index. This could result in an increase in the monthly payment. Subject to credit approval and program guidelines.