FIXED RATE CONVENTIONAL LOAN
Fixed Rate Conventional Loans
Fixed rate conventional loans offer predictable steady payments and protection against rising interest rates over the life of the loan, combined with industry standard qualifying guidelines established by Fannie Mae and Freddie Mac.
In deciding on the length of the term of your loan (i.e. 30-years or 15-years), there are several factors you will want top consider.
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Benefits of a 30-Year Fixed
- Your monthly payment will be substantially lower on a 30-year term than on a 15-year term.
- With today’s low interest rates (see Today’s Rates), buying a home is very affordable (Affordability Calculator).
- Because your interest rate is fixed over the life of your loan, you are protected against interest rates rising in the future.
- Buy your primary home with as little as 3% down payment*.
How a 30-Year Fixed Rate Mortgage Works
- You’ll pay off the mortgage in 30 years. Although you’ll pay more interest over the life of the loan compared to a 15-year fixed, your monthly payments will be lower.
- You can pay down your mortgage at any time without prepayment penalties.
- Your payment will go toward paying the principal (the amount you borrow) and interest (a fee you agree to pay when borrowing the money). Your property taxes and home owners insurance are included as well.
- With a fixed interest rate, your principal and interest payments won’t change over the life of the loan. The amount for your taxes and insurance can go up and down.
- You might have to pay for mortgage insurance. This depends on your down payment if you’re buying a home, or how much equity you have if you’re refinancing.
Benefits of a 15-Year Fixed
- Because the interest rate is lower on a 15-year term and your are paying the loan off in half the time, you pay substantially less interest over the course of your loan!
- Pay-off your mortgage faster than with other loans.
- With today’s low interest rates (see Today’s Rates), buying a home is very affordable (Affordability Calculator).
- Because your interest rate is fixed over the life of your loan, you are protected against interest rates rising in the future.
- Buy your primary home with as little as 3% down payment*.
* Down payments less than 20% typically require private mortgage insurance. Minimum down payment for first-time home buyers is 3%. Otherwise the minimum down payment is 5% for a conventional home loan.
How a 15-Year Fixed Rate Mortgage Works
- You’ll pay off the mortgage in 15-years. Because you’ll pay off the loan much faster than a 30-year mortgage, you’ll pay less in interest over the life of the loan.
- You can pay down your mortgage at any time without prepayment penalties.
- Your payment will go toward paying the principal (the amount you borrow) and interest (a fee you agree to pay when borrowing the money). Your property taxes and home owners insurance are included as well.
- With a fixed interest rate, your principal and interest payments won’t change over the life of the loan. The amount for your taxes and insurance can go up and down.
- You might have to pay for mortgage insurance. This depends on your down payment if you’re buying a home, or how much equity you have if you’re refinancing.
Why you should Choose the Loan Geeks at Finance of America Mortgage
- You don’t have to sacrifice great service to get a great rate on your home loan. We offer a Full Service home loan experience! (see Today’s Rates)
- With our State-of-the-Art Two-X Online Application process, you’ll get a fast, efficient, completely online process that is available 24/7/365 from application to closing. And you can monitor the progress of your home loan throughout the process.
- Our Loan Geeks Home Loan Experts are available to answer your questions by phone and email. We are here to assist you through the entire home loan process.
* Down payments less than 20% typically require private mortgage insurance. Minimum down payment for first-time home buyers is 3%. Otherwise the minimum down payment is 5% for a conventional home loan.
What is my next step?
Apply Online
With our state-of-the-art Online Application technology, getting a home loan has never been easier or faster. you will be walked through the application process step-by-step. And the help of a Loan Geeks Home Loan Expert is never more than a mouse click or phone call away.
Talk to a Loan Geeks Home Loan Expert!
If you are not comfortable starting the application process online, no need to worry. A Loan Geeks Home Loan Expert is available to answer all of your questions and get you started! Answer a few quick questions on the contact request and we’ll have a Loan Geeks Home Loan Expert call you.