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 by filling out this online form today.


*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
https://localfirstbank.com/mortgage/request-information/

Trending Topics

First Bank Credit Card

There are many benefits to having First Bank Credit. Is there a purchase right now that you could afford in a few weeks? Maybe you don’t feel comfortable putting down a large…

Local Banks Near Me

When looking for local banks near you, look no further than your neighborhood First Bank. With locations across North Carolina, South Carolina, and Virginia, you can count on us for all…

Hassle-Free Savings Account in Asheville, NC

The only thing most people want in a savings account is a safe place to keep their money without being hassled by annoying fees or bothersome requirements. At First Bank…

Checking Account Offers in South Carolina

If you live in South Carolina and you’re looking for some of the best checking account offers, your local First Bank can help. We offer a variety of checking account options—from basic accounts to…

Fee Free™ Checking Accounts – Florence, SC

First Bank in Florence, SC, has no-fee checking accounts to help you avoid fees, so you can spend your money on things that matter. Since 1935, First Bank has been…

FHA Mortgage Loans – Asheboro NC

Since 1935, First Bank has been a bank dedicated to providing for the community. We offer FHA mortgage loans in Asheboro, NC to help home buyers and refinancers obtain a…

What Are Mobile Merchant Services?

If you own a business, you know how essential technology is to making it run smoothly. You may have even asked the question, “What are mobile merchant services?” Read more…

Personal Loans – Lillington, NC

If you live in Lillington, NC, and are in need of a personal loan to cover expenses, visit your local First Bank. We offer personal loans with flexible terms and highly…

Small Business Loans – Albemarle, NC

If you are thinking about opening a small business in Albemarle, North Carolina, First Bank can provide you with a small business loan to get you started. Albemarle offers lower…

Best Small Business Bank – Florence, SC

Florence, South Carolina boasts one of the best business climates in the southeast. The city of Florence is bustling with shops, restaurants, festivals, farmers markets, and much more. If you’re…