Conventional Loans: Amazing Financing Possibilities
Conventional mortgages are one of the most sought-after home financing solutions because of their flexible terms, interest rates and limits. The Primex Mortgage Corporation professionals work with top lenders to provide conventional loans with the most competitive rates and benefits. If you’re interested in using a conventional loan for purchase or would like to refinance your existing loan, contact us to get started. We finance clients in Rockville, Bethesda, Gaithersburg, and nearby Maryland.
Conventional Loans Vs. Nonconventional Loans
Conventional loans are mortgages that are not insured through a division of the federal government. Nonconventional loans, conversely, are insured in part through different government agencies like the Federal Housing Administration or the Department of Veterans Affairs. Conventional loans are fully funded and insured through private lenders. Though every situation is unique, conventional loans typically have more stringent approval requirements than nonconventional loans.
Conforming and Nonconforming Conventional Loans
There are two main divisions of conventional loans to discuss: conforming and nonconforming loans. Conforming loans are mortgages that conform to lending limits set forth by government-sponsored entities Fannie Mae and Freddie Mac. These mortgage giants purchase mortgages in bulk, and they will only take on the risk of purchasing loans up to certain limits, which vary depending on where you secure your loan. In Montgomery County, the limit is $636,150. Conforming loans have very competitive rates, and for those in great financial standing, we can provide financing with no down payment. We offer fixed and adjustable interest rates for these mortgages.
Loans that exceed the conforming loan limit are called nonconforming or “jumbo” loans. Jumbo loans typically require a larger down payment (typically at least 20% or more) than conforming conventional loans. To qualify for a jumbo loan and finance a high-value home, you’ll need to be in good financial standing, have a good credit score, and have a low debt-to-income ratio. Many clients choose short-term jumbo loans with adjustable rates with the intention to refinance soon, but fixed rates are available. Jumbo loan interest rates are typically higher than conforming loan interest.
Refinancing a Conventional Loan
In addition to conventional mortgages for purchase, we also provide conventional refinancing. You can refinance from a conventional loan to a refinanced conventional loan or from a nonconventional loan to a conventional loan. People choose to refinance to secure better interest rates, change terms, refinance from a variable rate to a fixed rate, or to borrow against the equity they’ve built in their homes. When you finance with our highly competitive lenders, you can save a great deal over time.
See the Great Rates and Terms You Could Secure
The Primex Mortgage Corporation is a long-time partner to home buyers and refinancers in the area. If you’re considering conventional loans for purchase or to refinance, contact our mortgage professionals to learn more. We serve clients in Rockville, Bethesda, Gaithersburg, and surrounding Maryland cities. For a complimentary consultation and to have your questions answered, contact us today.