With a Conventional Fixed-Rate Mortgage, your interest rate and your monthly payment of principal and interest will stay the same for the entire term of the loan. This type of mortgage tends to be the most popular because it protects homeowners from potential monthly payment increases in the future. Cardinal Financial offers 30-year, 20-year, 15-year and 10-year fixed options.
Conventional Mortgages are also categorized as conforming or non-conforming. If a loan meets the underwriting requirements set forth by the government-sponsored entities Fannie Mae and Freddie Mac, it is considered a conforming loan. If a loan does not meet all these requirements, it is considered a non-conforming loan.
Additional Features and Benefits of a Fixed-Rate Mortgage:
- Buyer has immediate equity in the property
- No private mortgage insurance is required with a 20% down payment
- Monthly payments are based on an interest rate, principal loan amount, and amortized interest over the life of the loan (30, 20, 15, or 10 years)
- Your payment will never change throughout the life of the loan
- Your actual payment will vary based on your situation and the current interest rates when you apply. Curious about what your monthly payment would be on a fixed-rate mortgage? Check out our monthly payment mortgage calculator.
- Lower closing costs and fees
- No government stipulations and prepayment penalties if you sell or refinance your house.
Fixed-Rate Mortgage Qualification Requirements:
- Refinance up to 95% of your primary home’s value
- Purchase a home with as little as 3% down (primary home)
- Loan amounts from $50,000 to $3,000,000
Conventional Fixed-Rate Mortgages are ideal for buyers with excellent credit who can afford a down payment. Conventional financing is also available on second homes or investment properties.
To learn more about our Fixed-Rate loans, or loan-to-value, debt ratios and credit requirements on second home and investment properties, please contact one of our mortgage consultants.