Say Goodbye to PMI
Do you have an excellent credit rating, a steady income and some money saved up? Your mortgage consultant may recommend a conventional home loan. A conventional mortgage simply refers to any mortgage loan that is not insured or guaranteed by the federal government. Conventional loans boast great rates, lower costs, and home buying flexibility. They are the loan option of choice for about 60% of all mortgage applicants. Conventional loans are also known as conforming loans since they conform to a set of standards set by Fannie Mae and Freddie Mac.
Say goodbye to Private Mortgage Insurance!
Unlike FHA loans, conventional loans allow buyers to opt for a larger down payment in exchange for reduced Private Mortgage Insurance (PMI). If you can afford a down payment of 20% or more, you will not be required to carry PMI on your loan. Can’t afford 20% down? Mortgage insurance can be dropped after 20% of the loan has been paid. Conventional loans are a great option for a wide variety of borrowers and offer down payments as low as 3% depending on your financial situation.
Park Mortgage provides two main varieties of Conventional Loans.