Conventional Home Mortgage Loans

What are Conventional Home Loans

Conventional Home Loans

With a required minimal down payment of 5 percent, the conventional mortgage loan could be the right option for you and your family.

A conventional Loan option can be used to shorten the term, gain a better interest rate or simply cash out existing equity within the home.

We also offer additional expanded Conventional Mortgage Loan programs that requires a 3 percent down payment.

Features of a Conventional Home Mortgage

• Fixed Interest Rates with options of 10 year or up to 30 year terms.

• Closing Cost can be paid by the seller with limitations.

• Down Payments that are less than 20 percent will require mortgage insurance.

Call us today to see what option is best for you!

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    Conventional Loans from JTS & Co.

    When you know that it is time to buy a home, you might not be clear on which mortgage is right for you. Perhaps you already have a home, and want to upgrade to something larger, or maybe you are just starting out. Whatever your reasons for the mortgage loan, let the loan experts at JTS & Co. talk to you about the most popular loan on the market today, a conventional home mortgage loan.

    Conventional Mortgage Loans and Why They Matter

    There are many types of mortgage loans. Some are very popular, and some are highly specific for a certain need or requirement. One of the most popular and well-known of mortgage loans is the conventional loan.

    Unlike FHA or VA loans, the conventional loan is not government-backed. Government-backed loans are designed for people with less-than-perfect credit and who may not have a lot of money for a down payment. There are also certain loan amounts to which government-backed loans are restricted.

    Any buyer with good credit and a steady employment history would do well to consider a conventional home mortgage. Here, you will also find various options, all to help you make the most out of your money.

    Conventional loans are known as conforming loans or non-conforming loans.

    • Conforming loans are home mortgage loans that meet certain criteria, making them eligible for purchase by Fannie Mae or Freddie Mac.
    • Non-conforming loans do not meet these criteria, thus, making them ineligible. An example of a non-conforming conventional loan is the jumbo loan. This type of loan exceeds the conforming loan limit for an area and is used to purchase high-end or luxury properties.

    Features of the Conventional Loan

    A 20% down payment has always been required for conventional loans, but lower down payment requirements are becoming more and more the norm. One of the main advantages to putting down at least 20% of the purchase price of a house is that you are not required to pay private mortgage insurance, also known as PMI. Even if you do not have a 20% down payment amount, the PMI will be cancelled once you reach 22% equity in the property.

    For instance, an FHA loan also has PMI payments, and these payments must remain for the life of the loan. It can never be cancelled. The only way to rid yourself of private mortgage insurance with an FHA loan is to refinance to a conventional loan amount.

    Conventional loans come in different formats. There are:

    • Fixed-rate mortgages:These are usually 15-year, 20-year or 30-year loans. Regardless of what goes on in the stock market year-to-year, your mortgage payment will remain the same. There are no fluctuations with interest rates with a fixed-rate conventional loan.

    • ARMs: Known as adjustable-rate mortgages, this type of loan starts out with a fixed-rate amount for a specific period. After that time expires, your lender will reassess your loan based on current market rates. Your mortgage payment will rise or fall accordingly.

    You can purchase just about any type of property using conventional home mortgage loans. Besides a primary residence, a conventional loan can be used for a second home or a rental property. You will find some of today's lowest interest rates attached to conventional loans. Your home loan flexibility is at its greatest when you opt for a conventional loan.

    Trust JTS & Co. For Your Next Mortgage Loan

    If you are ready to purchase your next home, or your first home, or want to refinance at today's low interest rates, you want to work with a lender you can trust. You want financing without all the headaches you normally associate with receiving a loan.

    You might feel like you will not qualify for a mortgage loan. Perhaps you have been turned down already by another financial institution. That should never put you off inquiring from another mortgage lender. We understand how each person's history is unique to them, and we work with all our customers to find them the loan they can live with.

    Our wide and diverse portfolio of mortgage loan products is available for everyone, whether you want to purchase or need a refinance. Every property is different, every homeowner is unique, and we have loans for your needs.

    If you are purchasing your first home (or even your seventh), or want an investment property, or self-employed, have a high net worth, or need a little help procuring a mortgage loan, JTS & Co., is here to help. We find guide our clients to home financial solutions, all at a low rate.

    What can we help you with today? Our conventional home loans will help you on your journey to home ownership. Call us today and let us discuss with you all our conventional loan options. Our team knows how to get you home.

    The JTS & Co. Mortgage Payment Calculator factors in your fees to give you a more precise payment estimate.