Conventional Home Loans

Conventional Home Loans are home loans that are not insured by the U.S. Government. The most common types of conventional home loans are Fixed-Rate Loans and Adjustable-Rate Loans.

Features of Fixed-Rate Loans Include:

  • Predictable fixed payments
  • Easy to amortize payments
  • Protection against rising interest rates

Fixed Rate Loans are Recommended for:

  • Homebuyers who prefer regular, fixed payments
  • Homebuyers with fixed income
  • Homebuyers who plan to stay in their home for many years

Features of Adjustable-Rate Loans Include:

  • Early term low monthly payments
  • Lower start payments can allow larger loans
  • A variety of initial fixed rate options

Adjustable-Rate Loans are Recommended for:

  • Homebuyers who want to save money in the short run
  • Homebuyers who want to move in a few years
  • Homebuyers who desire a lower loan payment

Jumbo Loans

Another type of Conventional Home Loan is the Jumbo Loan. A loan is considered “jumbo” if it exceeds the conforming limit of $425,000 in most areas of California, but can be higher in more expensive counties. Jumbo loans are also available as fixed-rate or adjustable-rate loans.

  • Mortgage amounts in excess of the conforming limit of $425,000 for a one-unit property
  • Fixed or Adjustable Options

Jumbo Loans are Recommended for:

  • Homebuyers who need financing in larger loan amounts
  • Investment-minded buyers who can afford a large purchase, but want to leverage assets more effectively

Additional resources and information on conventional loans:

Do you think a Conventional Home Loan may be right for you?

There’s one easy way to find out…