Get Conventional Mortgage Loans In Goodyear, AZ

Conventional Mortgage Loans Goodyear, AZ

Curious what a conventional mortgage really is? At Infinite Lending, we provide our clients with a comprehensive understanding about conventional mortgages and their options. If you’re considering purchasing a home or refinancing your existing loan, understanding conventional mortgages is essential. This page aims to give you an overview of conventional mortgages, their features, benefits, and how they differ from other types of loans.

What is a Conventional Mortgage?

A conventional mortgage is a type of home loan that is not guaranteed or insured by a government entity, such as the Federal Housing Administration (FHA) or the Department of Veterans Affairs (VA). Instead, conventional mortgages are offered and backed by private lenders, such as banks, credit unions, and mortgage companies.

Features and Benefits of Conventional Mortgages:

  • Flexibility: Conventional mortgages offer a range of terms and options to suit different borrower needs. You can choose from various repayment periods, including 15-year and 30-year terms. Additionally, conventional mortgages allow borrowers to finance different property types, such as primary residences, second homes, and investment properties.
  • Loan Amounts: Conventional mortgages typically have higher loan limits compared to government-backed loans. This means that borrowers can secure larger loan amounts, making them suitable for purchasing more expensive properties.
  • Down Payment Options: Conventional mortgages require a down payment, and the amount can vary based on factors such as creditworthiness and the lender’s requirements. While conventional loans generally require a down payment of at least 3% to 5% of the home’s purchase price, making a larger down payment can potentially lower the interest rate and monthly payments.
  • Private Mortgage Insurance (PMI): If you make a down payment of less than 20% of the home’s purchase price, you may be required to pay private mortgage insurance. PMI protects the lender in case of default but can be canceled once you reach a certain amount of equity in your home.
  • Competitive Interest Rates: Conventional mortgages often offer competitive interest rates, especially for borrowers with excellent credit scores. These rates can be fixed or adjustable, depending on the loan terms and your preference.
  • Streamline Refinancing: Conventional mortgages allow homeowners to take advantage of market conditions by refinancing their existing loans. This can potentially lower monthly payments, reduce the loan term, or provide access to home equity for other financial needs.

How Conventional Mortgages Differ from Other Loans:

Compared to government-backed loans, conventional mortgages have distinct characteristics:

  • No Government Guarantee: Unlike FHA or VA loans, conventional mortgages do not have a government guarantee. This means that the lender assumes more risk, and borrowers may need to meet stricter qualification requirements, including higher credit scores and lower debt-to-income ratios.
  • No Upfront Mortgage Insurance: FHA loans typically require an upfront mortgage insurance premium, which adds to the borrower’s closing costs. With conventional mortgages, there is no upfront mortgage insurance payment.
  • No Funding Fee: VA loans usually require a funding fee, which is a one-time payment that helps offset the cost of the loan program. Conventional mortgages do not have a funding fee.
  • Flexibility in Property Types: Conventional mortgages provide more flexibility in financing various property types, including investment properties and second homes. Government-backed loans often have more restrictions on the types of properties that can be financed.

Is a Conventional Mortgage Right for You?

Choosing the right mortgage option depends on your individual circumstances and financial goals. If you have a strong credit history, a stable income, and a down payment, a conventional mortgage may be an excellent choice. It provides flexibility, competitive rates, and the potential to build equity in your home.

However, it’s crucial to consider all available options and consult with a qualified mortgage professional to determine the best loan for your needs. They can help assess your financial situation, explain the loan terms, and guide you through the application process.

At Infinite Lending, LLC, we specialize in helping borrowers navigate the world of conventional mortgages. Our experienced team of mortgage professionals is committed to providing personalized guidance, competitive rates, and exceptional customer service. Contact us today to learn more about conventional mortgages and begin your journey to homeownership.