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Conventional Refinance

Conventional loans come in a variety of options and with excellent advantages for qualified borrowers.

Product description

A conventional loan is a type of mortgage that is not guaranteed or insured by any government agency, including the Federal Housing Administration (FHA), Department of Agriculture (USDA) and the Department of Veterans Affairs (VA) and is typically fixed in its terms and rate.

However, conventional loans are commonly interchangeable with ‘conforming loans’, since they are required to conform to Fannie Mae and Freddie Mac’s underwriting requirements and loan limits.

The primary benefits of a Conventional Refinance are...

  • Lower overall cost than many government products that require mortgage insurance.
  • Conventional loans usually require less paperwork and can be obtained more quickly than government insured ones.
  • No PMI with down payments of 20% or more.

How do I qualify?

Conventional mortgage borrowers typically make larger down payments than FHA borrowers, and they tend to have a more secure financial standing and are less likely to default. A larger down payment means lower monthly payments. Plus, with the ever-increasing mortgage insurance premiums on FHA loans, payments for conventional loans that don’t require private mortgage insurance can be much more manageable in comparison.

Some other eligibility requirements include...

  • Credit Score. The minimum credit score requirement is typically between 620-640 depending on the the wholesaler that is used.
  • Income must be verified by reviewing your recent pay stubs, W2s and tax returns. Debt-to-income ratio cannot exceed 43%.
  • Bank statements and investments will need to be verified to ensure the you has sufficient assets to close. These funds must be able to cover a down payment with any associated closing costs.

Why us?

We’re transforming the way people think about financing their home. We’re also building a team that proactively tackles the challenges that come with getting a mortgage. Learn more about why we do what we do.

Is a Conventional Refinance right for you?

Speaking with one of our experience loan help officers can help you further decide the best option, weighting the benefits and drawbacks of loan types so that you can make the best decision for your situation.

Rate Assumptions

Last Updated: October 26, 2020, 9:01AM

Purchase of a one unit Single Family Home as a Primary Residence in Utah. 760+ FICO Credit Scores. $400,000 sales price/appraised value, $300,000 Loan Amount (75% LTV), 1% or less in Loan Discount Fee quoted in Interest Rate and APR. Typical lender closing costs without pre-paid escrow items and discount fee for rate range between $3,000-$4,000. Escrow account for taxes and insurance included in the loan.

VA - Waived, Upfront Funding Fee.

FHA - APR Includes Upfront and monthly Mortgage Insurance Fees