Most homebuyers choose conventional mortgages because they offer the best interest rates and loan terms—usually resulting in a lower monthly payment.
Why Choose a Conventional Loan?
Conventional mortgages because they offer the best interest rates and loan terms—usually resulting in a lower monthly payment.
Since most people choose a fixed-rate loan over an adjustable-rate mortgage, they don’t have to worry about rising mortgage rates, which makes it easier to budget.
While there are several benefits to securing a conventional mortgage, the type of loan you receive will be driven by factors that may not be in your control—such as FICO scores and other factors described above. However, if you have the option to choose your loan type, there are key advantages. For example:
- Faster Home Loan Processing
- Reduce or Avoid a Mortgage Insurance Premium
- Lower Mortgage Interest Rates
Is a Conventional Home Loan Right for You?
The bottom line is that conventional loans are really only available to borrowers with good credit and some available cash for down payment. If you are fortunate to be an attractive borrower, then you might have the ability to obtain a loan at a lower cost and have it processed faster than with a government insured loan.