QuickHome.Loans
QuickHome.Loans

Conventional Loans

I can help you determine if a conventional mortgage is right for you, regardless of your unique situation. A conventional loan can provide the financial security and flexibility you need to achieve your homeownership goals.

Fixed Rate Mortgages

A fixed-rate mortgage guarantees that your interest rate remains unchanged from the time you close on your mortgage until your final payment. This stability makes budgeting easier since your monthly payments will remain consistent throughout the life of the loan.

Advantages:

  • Interest rate and monthly payments remain unchanged, regardless of market fluctuations
  • Potential to refinance and take advantage of decreased market rates

Disadvantages:

  • Initial rates may be higher compared to adjustable-rate mortgages (ARMs), leading to higher monthly payments
  • Your interest rate doesn't automatically adjust down if market rates drop; other factors apply

Eligibility:

  • To qualify, you must demonstrate a sufficient income and strong credit history to prove that you can repay the loan.

Adjustable Rate Mortgages (ARM)

An ARM can help you save money, especially if you do not plan to stay in the home for an extended period. ARMs come in different configurations, such as 3/1, 5/1, 7/1, and 10/1. For example, a 3/1 ARM has a fixed interest rate for the first three years, then adjusts annually thereafter. The adjustment can result in either higher or lower monthly payments depending on market conditions, though caps are available to protect against excessive increases.

Advantages:

  • Lower initial interest rates compared to fixed-rate mortgages, leading to lower monthly payments
  • Potential to refinance to take advantage of decreases in market rates
  • Protection from excessive rate hikes through rate caps

Disadvantages:

  • Interest rates and monthly payments may increase after the initial fixed period
  • Payment caps may result in negative amortization, where monthly payments don't cover interest

Eligibility:

  • To qualify for an ARM, sufficient income and a strong credit history are required.

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