A conventional mortgage is a mortgage loan that is a loan secured by a real property through the use of a mortgage note which evidences the existence of the loan and encumbrance of that realty
through the granting of a mortgage which secures the loan.
When you apply for a conventional loan there are fees and additional costs associated with it. These fees vary depending on the mortgage lender (closing costs).
Conventional loans are not insured by the federal government such as VA and FHA loans. Conventional loans have guidelines set by Fannie Mae and Freddie Mac. They have strict guidelines; such as credit and income requirements. Most conventional mortgages require that you repay the loan in full at a fixed interest rate over a 30 year period. Shorter repayments are also available. If you have great credit and steady income conventional loans often offer lower interest rates. By having a lower interest rate you can lower your monthly payments and the amount you will need to repay over the life of the loan. If the Loan to Value ratio exceeds 80% on a conventional mortgage private mortgage insurance will be required.
The Truth about Conventional Loans at Box Home Loans
If you’re interested in a conventional loan I recommend that you shop around. After you have done that take a look at Box Home Loans before you decide which lender to go with. The customer service is wonderful and by calling them or chatting online every question you have about a conventional mortgage will be answered and you can be helped step by step thru the process.
Box Home Loans has cut loan closing costs by almost 68%. Box Home Loans only charges $149.00 in total lender and broker fees. The difference between Box Home Loans and other lenders are closing costs. You may be able to get the same rate with other lenders however we may have lower closing costs and great customer service.