The Safety and Stability of Conventional Loans
If you want a solid, stable home loan, look no further than a conventional loan. Over the past few years, conventional loans have gained popularity for being safer than many other types of loans.
Unlike other loans, conventional loans are not government sponsored. They are considered non-government sponsored entity loans.
Conventional loans can be adjustable or amortized:
- Adjustable loans begin with a fixed-rate for a fixed number of years before becoming adjustable. If you see your income increasing in the next few years, an adjustable-rate loan might provide you with the flexibility you need.
- Amortized loans have the same interest rate from the loan’s first month to its last. Depending on your qualifications, the term of your loan can be anywhere from 20 to 40 years. Typically, the longer your loan term lasts, the lower your yearly rate.
Because banks offer fewer products, homebuyers benefit from getting their loans through mortgage brokers. Mortgage brokers provide more products because they can broker their loans through a wide variety of banks.
If you think a conventional loan might be right for you, please contact our Grand Rapids mortgage office today or give us a call at 616.974.9710.