Conventional Mortgage Loan Rates

Conventional Mortgage Loan Rates

If you are looking to buy a home or refinance your mortgage you may consider a conventional mortgage loan. A conventional mortgage loan is a mortgage that is not backed by the federal government, though conforming conventional loans follow the terms and conditions set by the government sponsored enterprises (GSEs): Freddie Mac and Fannie Mae. A non-conforming conventional mortgage loan does not and is generally a Jumbo Loan. Conventional mortgage loans generally have low closing costs and flexible payment options. Conventional mortgage loan rates are decided by several factors for each individual and the loan programs they choose.

What types of conventional mortgage loans are there?

The most common conventional mortgage loans terms are the 30-year fixed rate and 20-year fixed rate mortgages, however, conventional loan programs vary and you can get conventional mortgage loans in both fixed and adjustable rates. You can find conventional mortgage loan rate terms in fixed rate mortgages for 10, 15, 20, 25, 30 and 40 years and adjustable rate mortgages in 3/1, 5/1, 7/1 and 10/1.

What Drives Conventional Mortgage Loan Rates?

Conventional mortgage loan rates are decided by many different factors. The average conventional mortgage loan rate can go up or down depending on current bond rates, inflation, economic activity, and the Federal Funds rate. However, the conventional mortgage loan interest rate that YOU get will also depend on your personal financial factors, such as credit rating, FICO score, employment activity, assets and income.

How do I get the best Conventional Mortgage Loan Rate?

To get the best conventional mortgage loan rate, you will need to have certain things in order. Your credit will need to be good, you will need to have a solid employment history and the bigger the down payment, the better chance you have at getting the lowest conventional mortgage loan interest rate possible. Also, different loan terms can offer you different rates, so compare the difference in rates for each term available to you.

How do I Get a Conventional Mortgage Loan?

You can get a conventional mortgage loan through a mortgage broker or mortgage banker. Mortgage brokers will be able to shop around for you from several different lending sources, and can help you decide if a conventional mortgage loan or a government backed loan is best for your individual needs. A mortgage banker can also offer conventional mortgage loans from the banks they serve, however they will have those banks only for resources and may or may not be licensed.

If you are looking at buying a home or refinancing your mortgage, view our resource of mortgage professionals on Lender411. If you have questions, get real and educated answers by expert mortgage and loan professionals who truly desire to help you on your journey.