While speaking to a client today, I realized that there is a lot of misunderstanding when it comes to a Conventional mortgage and the pros and cons that they have with one.
For first time home buyers a conventional loan will offer:
As little as 3% down payment
No upfront Private Mortgage Insurance (PMI) cost
Option to remove PMI when the loan-to-value reaches 80% or not to pay PMI
Interest rate is higher that FHA loans
Debt-to-Income ratios allow for less debt
There are also programs available via Freddie Mac and Fannie Mae for lower income individuals and families which may qualify you for a break in your interest rate and a reduced PMI rate.
Give us a call today or schedule an appointment with Abel online to see what options are available for you!
You have not retired yet because of increasing mortgage payments?
Apply for a reverse mortgage and you won't have to make another payment. Please review our reverse mortgage page for full details on and videos on how a reverse mortgage works.
Putting off purchasing your home?
This is the best time to purchase a home. Low rates have come back. See how much you can buy.