Is a conventional loan right for you?
Looking for a straightforward mortgage option with flexible terms and competitive rates? A conventional home loan might be the right fit.
Conventional loans are one of the most commonly used types of home financing. They are not backed by a government agency and are available through private lenders. These loans can work well for a wide range of homebuyers, from first-time purchasers to those refinancing.
Benefits of a conventional loan
Conventional home loans come with several potential benefits, depending on your qualifications and goals:
-
No mortgage insurance with higher down payments
-
Multiple loan term options, including 30, 20, 15, and 10 years
-
Low down payment programs may be available
-
Available for primary residences, second homes, and investment properties
-
Competitive interest rates based on credit and other factors
Conventional loan eligibility requirements
Every loan application is unique, but here are a few common factors lenders consider when reviewing conventional loan applications:
-
Credit score that meets current lender standards
-
Verifiable income and employment history
-
Debt-to-income ratio within allowable limits
-
Down payment amount (options may start as low as 3% depending on your profile)
Want help reviewing your options? We’re here to guide you through the process.
Check out what your monthly payment could be by using our Conventional Mortgage Calculator…
Our mortgage calculators are for demonstration purposes only and may not reflect actual numbers for your specific mortgage. Contact us and we will walk you through the best possible mortgage scenario for your specific needs!
Principal & Interest (P&I)
$
PMI
$
Taxes & HOA
$
Homeowners Insurance
$
Purchase Price
Home Value
$
Down Payment
$
Current Mortgage Balance
$
Cash Out
$
Total Loan Amount
New Loan Amount
$
Home Equity After Cash Out
$
Estimated Taxes & Insurance
Property taxes are generally estimated to be 1.2% of the home's value, but may vary based on your location. Annual homeowners insurance is roughly 0.35% of the home's value but can change based on insurer. Your loan specialist can help you determine property tax and insurance rates in your area.
PMI
The PMI (Private Mortgage Insurance) is a mortgage lenders' protection in the event of a default. PMI is paid monthly as part of your mortgage payment to the lender. Once a borrower has paid the equivalent of the 20% down payment, PMI can be removed from the monthly mortgage payment.
Estimated Payment
$ /mo
Loan amount
$
Down payment
$
Cash Out
$
Home Equity After Cashout
$
Interest rate
Loan term
Taxes & insurance included?
Property tax
Homeowner's insurance
$
Mortgage insurance
$
HOA dues
$
Payment Breakdown
Amortization
Principal vs. Interest
Amortization Schedule Breakdown
Our detailed amortization schedule breaks down your mortgage payments, showing how they are split between interest and principal over the life of your loan.
Note: The actual monthly payment may be higher than what is shown here, as this schedule does not account for variable costs such as property taxes and home insurance, which are often included in your total mortgage payment.
- Principal payments: $$240,000 (the amount borrowed)
- Interest payments: $$297,554 (the cost of borrowing)
Resources
Get started by using one of our FREE tools!
No matter what your situation is, there is a home financing solution for you. We are ready to guide you through your options and get you the best deal possible!
Experts
Check out our other mortgage calculators
Access our top-rated mortgage calculators to expertly assess your financing options, compare various loan types, and make informed decisions for your home buying journey.
