Conventional Home Loans
A conventional home loan is a type of mortgage loan that isn't backed by a government agency like the Federal Housing Administration (FHA) or U.S. Department of Veterans Affairs (VA). We offer two types of conventional home loans, fixed-rate and adjustable rate.
If you're a low to moderate income borrower, you may qualify from loan programs geared more specifically to you.
Fixed-Rate Home Loans
- Interest rate does not change during the life of the loan.
- Monthly payment of principal and interest remains the same for the life of the loan.
- The escrow portion of your monthly payment will be adjusted annually to account for increases in housing-related expenses, such as property insurance and real estate taxes.
- Loan terms vary from 10 to 30 years.
- Eligible to be refinanced at any time.
Adjustable-Rate Home Loans
- Interest adjusts after being fixed for an initial period, usually 5 or 7 years.
- Interest rate caps limit how much your interest rate can increase or decrease.
- Monthly payment of principal and interest stays fixed for an initial period, usually 5 or 7 years, then adjusts annually thereafter.
- The escrow portion of your monthly payment will be adjusted annually to account for increases in housing-related expenses, such as property insurance and real estate taxes.
- Loan terms vary from 10 to 30 years.
- Usually provides for a lower initial interest rate than a fixed-rate loan, saving you money if you expect to move or refinance within a few years.
- May cost you less in loan and closing costs than a fixed-rate loan.
- Eligible to be refinanced at any time.
