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:
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No mortgage insurance with higher down payments
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Multiple loan term options, including 30, 20, 15, and 10 years
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Low down payment programs may be available
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Available for primary residences, second homes, and investment properties
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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:
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Credit score that meets current lender standards
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Verifiable income and employment history
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Debt-to-income ratio within allowable limits
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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…
The results provided by this mortgage calculator are for informational and illustrative purposes only. They do not constitute a commitment to lend or an offer of credit. Actual loan terms, interest rates, and monthly payments may vary based on factors such as credit profile, loan product, property location, and other considerations. All estimates are subject to underwriting approval and may not include additional costs. Borrowers should carefully review their financial situation and consult with a licensed mortgage professional before making any loan decisions.
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)
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