Conventional loans

These loans meet the lending guidelines but are not insured by the government. If you have excellent credit and at least 5% down payment, then this option can offer you better rates and terms. Typically a conventional loan falls in one of the two bellow mentioned categories.

– Fixed rate: Your rate and payment never change. If your timing is right, you can lock into low payments and manage your cash flow pretty easily.

A 15-year or 30-year fixed rate mortgage can be ideal for you if you are planning to maintain the same place of residence for long-term.

– Adjustable rate: Interest rate can change once a year after the initial period.

Initially interest rates are lower in this case, so if you are planning to move to another location in near future, a short-term ARM will be ideal for you.