November 29, 2016

Conventional Loans

 

icon-approvedA conventional mortgage is a loan that is not guaranteed or insured by any government agency. It is typically fixed in its terms and rate. … Usually, a conventional mortgage is a 30year fixed rate loan. That means it has a fixed interest rate for the 30 year term of the mortgage.

 

30 Yr. Fixed

A fixed-rate mortgage (FRM) is a type of mortgage characterized by an interest rate which does not change over the life of the loan. A 30year FRM is simply a fixed rate mortgage that lasts for 30 years.

20 Yr. Fixed

A 20year FRM is simply a fixed rate mortgage that lasts for 20 years.

15 Yr. Fixed

A 15year FRM is simply a fixed rate mortgage that lasts for 15 years.

10 Yr. Fixed

A 10year FRM is simply a fixed rate mortgage that lasts for 10 years.

10 Yr. ARM

A 10 Year ARM is a loan with a fixed rate for the first 10 years that has a rate that changes once each year for the remaining life of the loan. Because the interest rate can change after the first 10 years, the monthly payment may also change. A 10 year ARM, also known as a 10/1 ARM, is a hybrid mortgage.

7 Yr. ARM

A 7 Year ARM is a loan with a fixed rate for the first 7 years that has a rate that changes once each year for the remaining life of the loan. Because the interest rate can change after the first 7 years, the monthly payment may also change. A 7 year ARM, also known as a 7/1 ARM, is a hybrid mortgage.

5 Yr. ARM

A 5 Year ARM is a loan with a fixed rate for the first 5 years that has a rate that changes once each year for the remaining life of the loan. Because the interest rate can change after the first 5 years, the monthly payment may also change. A 5 year ARM, also known as a 5/1 ARM, is a hybrid mortgage.