Your Options

Conventional, Fixed Rate Home Loan

If you are looking for a traditional approach for your home financing needs, Certainty Home Loans offers fixed rate conventional home loans with terms up to 30 years. 

A 30-year home loan provides more time to repay the loan and generally provides the homeowner with a lower monthly payment amount. However, a 15-year home   loan will have a higher monthly payment, but cost you less in the long run.

Conforming or Non-conforming?

Conventional loans can be either conforming or non-conforming. A conforming loan is a mortgage loan that falls within government-sponsored enterprise—Fannie Mae and Freddie Mac—guidelines. These behind-the-scenes government entities set the national conforming loan limit and actually drive the home loan market.

Non-conforming loans generally offer a wider range of acceptance and will likely bear a higher interest rate than conforming loans. Reasons an applicant may not meet conforming loan criteria include credit history, recent bankruptcy, debt load, or problems securing documents surrounding employment, income, or assets. When a borrower does not meet (or “conform” to) the guidelines of a conforming loan, he or she may wish to explore non-conforming loan options.

What’s the conforming limit for your county?

Every county in the U.S. has its own conforming loan limits. The FHFA decides at the end of each year limits if they will  change the conforming loan limits for the upcoming year, starting on January 1st. In 2020 they can range anywhere from $510,400 for much of the U.S. to $765,600 for high cost some areas. Click here to view the limits in your county.

Highlights of a Conventional Fixed Rate Home Loan

  • Your interest rate is locked in for the term of your home loan. You’ll be able to budget with confidence, knowing your monthly principal and interest (P&I) payments won't change during your loan term.
  • A 620 minimum FICO credit score is required to be eligible for a Conventional home loan, however, programs for non-traditional credit with no credit scores are available with additional terms.
  • Conventional home loans are available to purchase or refinance your home, repair or remodel your new home purchase, or to refinance and remodel your current home.
Conventional Mortgage Sample Comparison
15 Years 30 Years
Sales Price: $250,000 Sales Price: $250,000
Loan Term: 15 years fixed rate Loan Term: 30 years fixed rate
Down Payment: $12,500 Down Payment: $12,500
Loan Amount: $237,500 Loan Amount: $237,500
Interest Rate: 3.125% Interest Rate: 3.750%
APR: 3.411% APR: 4.202%
Mortgage Insurance: $75.00 Mortgage Insurance: $127.00
Est. Monthly Payment: $1,654.00 Est. Monthly Payment: $1,100.00
Est. Total Payments over full term
of loan: $297,720
Est. Total Payments over full term
of loan: $396,000

APR current as of 04/22/2020 is subject to change daily without notice and assumes a minimum FICO score of 720. No HOA fees on an owner occupied single family residence. Monthly payment does not include taxes and insurance, actual monthly obligation will be higher. Loan amount based on an LTV of 95.00%. Closing costs for 15 year fixed rate loan estimated to be $5,357 and $5,357 or a 30-year fixed rate loan.