Skip to main content
_FB_2018-Icons-finalized-cleaned-up_new_FB_2018-Icons-finalized-cleaned-up_newGroup 9
Back
Scroll to top

Conventional Mortgage Loans

Applying for a home loan can be a strenuous process, especially if you’re unsure which type of loan is the best fit for your financial situation. Before you apply, it is important to understand the two types of loans available to you: conventional mortgage loans and a government-backed loans. In this article, we’ll break down the basics of conventional loans.

What are Conventional Mortgages?

Conventional loans can have fixed or variable interest rates, which can be impacted by your credit score. Qualifications for conventional loans are usually stricter than government-backed loans because they carry a higher risk for banks and private lenders. If the borrower defaults on the loan, the banks and private lenders are not protected.

These kinds of loans are not insured by the federal government, but they are still required to follow guidelines set by the Federal National Mortgage Association—a.k.a. Fannie Mae and Freddie Mac.

A Conventional Loan to Meet Your Needs

If you live in North Carolina or South Carolina and are looking for a flexible and affordable conventional loan,* look no further than your local First Bank. We offer both adjustable-rate and fixed-rate mortgages with a range of features and benefits that are sure to fit your specific financial needs.

Conventional Adjustable-Rate Mortgages

This kind of mortgage loan changes periodically depending on shifts in the corresponding financial index associated with the loan.

  • ARMs generally have a lower initial interest rate than fixed-rate mortgages.
  • Both your interest rate and your P&I (monthly principal and interest) payments will stay the same for an initial period of 3, 5 or 7 years. After that it will adjust periodically.
  • Interest rate caps set a limit on how high your interest rate can go for your P&I payment for each adjustment and over the life of the loan.
  • Loans are available for 30-year amortization schedules.

Conventional Fixed-Rate Mortgages

  • Your interest rate and P&I payments stay the same for the life of your loan. That predictability for your monthly P&I payments enables you to budget more easily.
  • This kind of loan is available in a variety of loan term options, and it protects you from rising interest rates no matter how high they fluctuate.
  • This option is good for individuals or families who plan on staying in the same home for a long time.

No matter which kind of conventional loan you’re interested in, we’re confident that our knowledgeable loan officers will be able to find the best fit for you. Contact us for a free personal mortgage consultation with one of our experts.


*Loans subject to credit approval.

———
Sources:
http://budgeting.thenest.com/conventional-mortgage-loan-mean-4051.html
http://homeguides.sfgate.com/conventional-mortgage-loan-1991.html
http://www.investopedia.com/terms/c/conventionalmortgage.asp
http://www.zillow.com/mortgage-learning/fha-vs-conventional-loans/
https://localfirstbank.com/mortgage/loans-programs/conventional-loans/
http://www.investopedia.com/terms/a/amortization.asp

Find a Loan Officer


Trending Topics

Four Different Types of Services | Banking

A bank’s job is to provide customers with financial services that help people better manage their lives. As technology advances and competition increases, banks are offering different types of services to stay...

First Bank is One of the Top Banks in the U.S.A.

When searching for the top banks in the U.S., it is often smarter to work with a small community bank over a national bank. Small banks often have deeper connections to the community and are invested in the success of...

Home Mortgage Calculator from First Bank

A home mortgage calculator can help you determine your monthly mortgage payments. This will help you financially prepare for that future purchase, whether you are a first-time homebuyer or seeking a vacation home. You can...

Commercial Loan Payment Calculator

Are you interested in obtaining a commercial mortgage? A commercial loan calculator* can help determine your monthly payments. This is important because purchasing a location for your business is significant and requires a...

High Interest Checking Accounts – North Carolina

A high interest checking account in North Carolina can offer a safe, steady solution for those who want to grow their money without much risk. At First Bank, we have several branches conveniently located across the state...

4 Questions to Ask When Searching for the Best Savings Account in Florence, SC

If you’re looking for the best savings account in Florence, SC—look no further than your local First Bank. Florence South Carolina, dubbed an All American City by the National Civic League is home to two great...

Savings Account Interest Rates in South Carolina

Whether you’re searching for savings account interest rates in South Carolina, looking for an account with a higher rate of return, in the market for a long-term savings strategy with tax advantages, or looking to...

Best Savings Account for Kids in Wilmington, NC

By simply opening one of the best savings account for kids in Wilmington, NC, you can set your child up for future financial security through First Bank. First Bank has five locations in Wilmington, and each offers a...

A Checking Account Comparison Worth Your Time

Contrary to popular belief, not every checking account is the same. That’s why First Bank has five options to ensure there’s one to fit your specific needs. Review our checking account comparison below to find...

What Are 30-Year FHA Mortgage Rates?

If you are considering applying for an FHA loan to purchase a home, you may be wondering, “What are 30-year FHA mortgage rates?” If you want to find out what the current average 30-year FHA mortgage rates...