Conventional Mortgage Loans

What are CONVENTIONAL Mortgage Loans?
 

Conventional Loans

A Utah conventional mortgage is a home loan that is not insured by the government (like FHA, VA, or USDA loans), they typically meet the guidelines set by Fannie Mae or Freddie Mac. These loans are also referred to as conforming loans. Conventional loans have good mortgage rates and loan terms and, lower closing costs than other types of loans. Conventional home loans usually require you to have good-to-excellent credit and credit scores, lower monthly debt payments, and steady income.
 

Buying a Home with a Conventional Loan

When buying a home with a conforming mortgage you will need a minimum down payment of 3%. Currently, Advanced Funding offers a loan with only a 1% down payment. Contact us for further information, 801-272-0600.

These loans allow you to buy a primary residence, a second home, or rental properties, other loans often limit you to buying a primary residence. Most Utah conventional loans allow you to purchase single-family homes, warrantable condos, planned unit developments (PUDs), and one to four-family residences.

If you have at least a 20% down payment you are not required to buy private mortgage insurance (PMI). In the event you do not have a large down payment there may be options to reduce your monthly mortgage insurance payment or eliminate it by increasing your mortgage rate or paying for it in a lump sum. The cost of mortgage insurance on these loans usually cost less than an FHA loan and are cancelable when your home equity reaches 20%.

 

 

Refinancing a Conventional Mortgage

A conventional home loan can refinance any loan type, there are many reasons you may want to consider refinancing to this type of loan.

  • Cancel FHA mortgage insurance or PMI
  • Consolidate a first and second mortgage
  • Refinance another conventional loan
  • Reduce the length of your loan
  • Refinance an adjustable rate mortgage (ARM)

More refinancing information can be found here.
 

Types of Conventional Loans

Fixed Rate Mortgages: Your interest rate and principal and interest payment doesn’t change. You are able to choose from multiple loan terms when choosing a fixed rate loan. The most common loan lengths are 30 year fixed and 15 year fixed. Other loan terms are available, such as 20, 10, or 5 year options. The shorter your loan term the higher your payment will be. As your Utah mortgage broker, we can help you choose the option that is best for your loan needs.

Adjustable Rate Mortgages: Just like a fixed rate loan, an ARM loan as many options to choose from. Today the majority of these loans come with an initial fixed period before your interest rate and mortgage payment can change. After the initial period, your mortgage interest rate can change once a year. Adjustable rate loans are available with the following terms:

  • 3/1 ARM: Fixed rate for 3 years, an adjustable rate for the remaining 27 years
  • 5/1 ARM: Fixed rate for 5 years, an adjustable rate for the remaining 25 years
  • 7/1 ARM: Fixed rate for 7 years, an adjustable rate for the remaining 23 years

What is the Difference Between FHA Loans and Conventional Mortgages?
 

Prepare to Buy a Home

1. Exploring Your Loan Options

2. Learn About Loan Costs

3. Gather and Update Your Paperwork

4. Get a Pre-Approval Letter

5. Select the loan that fits your needs

6. Find your new home

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Your Mortgage Broker

As a mortgage broker, we work with several Utah mortgage lenders, enabling us to offer you a variety of Utah mortgages at the best mortgage rates and lowest fees available. Working with several lenders allows us to offer more Utah home loans to help you achieve your goals. Whether you're buying a home or refinancing your current home, Advanced Funding is here to help. Our mortgage loan officers are available to help you during regular business hours or a time that is more suitable to your needs. Call today for more information, 801-272-0600.

Experience Matters

As a top mortgage company, Advanced Funding Home Mortgage Loans offers a variety of Utah mortgages and refinances. Our licensed Utah mortgage brokers are both knowledgeable and experienced to ensure you a pleasant home loan experience at the best interest rates available. We combine the use of technology, impeccable service, a dynamic management team, along with a well-trained, and experienced staff to produce results, such as great mortgage rates, low fees, and most importantly, a fast and pleasant loan experience.

Advanced Funding Home Mortgage Loans
6589 South 1300 East, Suite 200
Salt Lake City, UT 84121

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