If you ask our Home Lenders in Navarre, a Conventional or Fixed Rate mortgage loan is the most common home loan option on the market today. But just because it’s popular doesn’t mean that it is ideal for you. It is important to understand what a fixed-rate mortgage is before determining if it is the right option for you.

What Is a Conventional Mortgage Loan?

With a fixed-rate mortgage, the interest rate and monthly payments remain consistent throughout the duration of the loan. While the monthly amount for interests and principle will change each month, your actual monthly mortgage payments will not.

A fixed-rate mortgage is an ideal loan for first-time home buyers who want consistent monthly payments and those who plan to remain in their home for a longer period. It also is ideal for those looking to refinance their home mortgage through a refinance program, such as the HARP program.

15-Year Versus 30-Year Conventional Mortgage Loan

The most common fixed-rate loan options are 15-year fixed-rate mortgage loans and 30-year fixed-rate mortgage loans. The primary difference is how long you have to pay off the mortgage loan. With a 15-year fixed-rate mortgage, you can expect to have higher monthly payments but lower interest rates.

Pros of a Conventional Home Mortgage

 Stability – Monthly payments remain stable despite fluctuating interest rates
 Protection – Offers protection from sudden spikes in interest rates
 Easy-to-Understand – Straightforward mortgage terms makes it easier to shop around for best deal

Cons of a Conventional Home Mortgage

 Higher Interest Rates – Interest rates may be higher than with alternative loan options
 Harder to Qualify – It can be more difficult to qualify for a fixed-rate home mortgage
 Stuck with Rate – You are stuck with fixed rate unless you choose to refinance mortgage

Hassle-Free Mortgage Loans with Southpoint Financial

At Southpoint Financial, we understand that the home mortgage process can be complicated and stressful. You can depend on our experienced loan officers to walk you step by step through the entire process. We will take the time to answer all of your questions so you can get a clear picture of exactly what type of loan is best for your situation.

Find out if a fixed rate home mortgage is the right solution for you by calling one of our Home Lenders in Navarre, email our office, or submit your application to pre-qualify for a home mortgage loan here online. (850) 936-0422