TRUSTCO 

Lower Rates with More Flexibility

 

A conventional mortgage refers to any loan that is not insured or guaranteed by the federal government, as opposed to government-insured loans including Federal Housing Administration (FHA), U.S. Department of Veteran Affairs (VA) and U.S. Department of Agriculture (USDA).

 

Conventional Highlights

 

If you have good credit and stable income, a conventional loan might be the right option for you since it offers:

• Lower interest rates for borrowers with good credit

• Flexible mortgage insurance options

• Fewer penalties and fees

• Flexible loan terms

 

Conventional Loan Programs

 

Adjustable-Rate Mortgage

An adjustable-rate mortgage (ARM) is a loan term option with interest rates that can change periodically after the

initial fixed-rate period. After this introductory period, monthly payments are susceptible to increases or decreases

based on market fluctuations, which can also affect the monthly payment. 

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Fixed-Rate Mortgage

Fixed-rate mortgages protect you against rising rates since the interest rate remains the same for the entire term

of the loan. Plus, you have the option of selecting a 10, 15, 20, 25 or 30-year term. The main difference is the lower

term options have higher monthly payments, which also means you are building home equity faster.

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Jumbo Mortgage

A jumbo loan, or non-conforming mortgage, allows you to purchase more expensive homes with a loan amount above

the conforming limit set by the Federal Housing Finance Agency. In most areas of the country, the conventional conforming loan limit is $510,400; however, the limit is $765,600 in higher cost areas. 

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