Conventional Mortgage

MMG

Conventional Mortgages

Welcome to our Conventional Mortgages page at Mahoney Mortgage Group, where we’ll provide you with valuable insights into conventional home loans. If you’re considering buying a home or refinancing your existing one, understanding conventional mortgages is crucial. These loans play a significant role in the housing market and offer a range of benefits for borrowers with strong credit histories and financial stability.

What is a Conventional Mortgage?

A conventional mortgage, also known as a conforming loan, is a type of home loan that is not insured or guaranteed by the government, unlike FHA or VA loans. Instead, conventional mortgages are backed by private lenders, and they adhere to guidelines set by two government-sponsored enterprises: Fannie Mae and Freddie Mac.

Key Features of Conventional Mortgages:

Flexible Loan Terms:

Conventional mortgages offer a variety of loan terms, including 15, 20, and 30 years, giving borrowers options to fit their financial goals and budget.
Down Payment Requirements:

While conventional loans typically require a down payment, the amount can vary. A larger down payment can often lead to better interest rates and lower monthly payments.
Credit Score:

Lenders typically require a higher credit score for conventional mortgages compared to government-backed loans. A good credit score can lead to more favorable terms.
Private Mortgage Insurance (PMI):

If you make a down payment of less than 20%, you may be required to pay PMI. However, once you reach a certain level of equity in your home, you can often request to have PMI removed.

Advantages of Conventional Mortgages:

Competitive Interest Rates:

Conventional loans often come with lower interest rates compared to other loan types, making them cost-effective in the long run.
Flexible Loan Amounts:

Conventional mortgages are suitable for a wide range of property types and price ranges, from starter homes to high-value properties.
No Upfront Funding Fee:

Unlike some government-backed loans, conventional mortgages do not require an upfront funding fee.

Is a Conventional Mortgage Right for You?

Determining whether a conventional mortgage is the right choice for you depends on your financial situation, credit score, and homeownership goals. It’s essential to work with a knowledgeable mortgage lender at Mahoney Mortgage Group who can help you explore your options and find the loan that best suits your needs.

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