Is a conventional loan right for you?
Conventional loans are designed for individuals who have saved up a significant down payment. They provide benefits for those seeking long-term stability in homeownership by potentially offering lower overall costs compared to other financing options. Choosing a conventional loan can help you make a financially informed decision that aligns with your specific goals and aspirations.
Benefits of a conventional loan
Flexibility: offers versatile financing for diverse housing needs.
Lower interest rates: Strong credit unlocks competitive rates for affordable homeownership.
No PMI Requirement: Once equity reaches a certain threshold, conventional loans do not require private mortgage insurance (PMI), reducing monthly expenses.
Efficient approval Process: Faster approval process compared to some government-backed loans
Property Choice: More freedom in choosing properties without appraisal or condition restrictions
Conventional loan eligibility requirements
- Down payments for Conventional loans range from 3% to 20% of the home’s purchase price, impacting loan terms and PMI costs.
- Conventional loans require a minimum credit score of around 620, but higher scores lead to better loan terms.
- Borrowers must show income stability and employment history with pay stubs, tax returns, and other financial documents.
- Lenders assess debt-to-income ratios to ensure borrowers can handle mortgage payments and other financial obligations.
Check out what your monthly payment could be by using our Conventional MortgageCalculator…
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
$Purchase PriceHome Value$
Down Payment$
Current Mortgage Balance$
Cash Out$
Total Loan AmountNew Loan Amount$
Home Equity After Cash Out$
Estimated Taxes & InsuranceProperty 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.
PMIThe 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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