By definition, conventional is the standard by which all others are measured; the same applies to a Conventional Mortgage. When most people think of buying a home, they think of a Conventional 30 year fixed rate mortgage and the consistency it provides with a consistent interest rate throughout the lifespan of the loan.
With 15-year and 30-year options available, homeowners can count on consistent monthly payments for many years to come allowing them for long term planning and budgeting of their finances. If you are looking to buy a new home and stay there for the indefinite future, a Conventional mortgage is what you are looking for. If you are in an existing mortgage and want to refinance to a lower rate, or you do not intend to be in your home long, you may want to consider one of our adjustable rate mortgage options.
A 30-year fixed rate mortgage makes your monthly mortgage payments more affordable as interest and principal are spread out over a longer period than a 15-year term, but you end up paying more interest over time. Lower monthly mortgage payments are often the differentiator that allow you to afford a larger or more lavish home.
With a 15-year fixed rate loan, you’ll pay off your mortgage in half the time and reap the benefits of lower rates than you can get with a 30-year term. A shorter loan term and lower rates equate to less interest on your loan and more money in your pocket long-term.