A conventional mortgage allows you to put down as little as 5%. However, if you put 20% down, then you immediately have equity in your home as soon as close. This is beneficial to if you plan to refinance or sell within a few years. A larger down payment can generally lead to a lower monthly payment and a better interest rate. Our Mortgage Lenders will work with you to find the best options for you budget.

What is an Escrow Account and what are the requirements for this loan?

Escrow accounts are like savings accounts that are managed by your mortgage lender. Your lender will deposit a portion of every mortgage payment into your escrow account to cover estimated property taxes, homeowners, and mortgage insurance premiums, long with flood insurance if necessary. It does not cover water/sewer bills, one-time assessments by your local government, nor homeowners association dues, or supplemental tax bills.

This loan requires you to deposit 20% of your mortgage payment into an escrow account.

How do Fixed Rate and Adjustable Rate Mortgages differ?

The principal and interest payment on a Fixed Rate will not change during the fixed period, but on an Adjustable Rate, it could increase or decrease depending on market interest rates.

Is a Fixed Rate or Adjustable Rate better?

The length of time you intend to stay in your current home is usually the determining factor. An adjustable rate mortgage may be right for you if you plan to stay less than 7 years. Ask one of our Mortgage Lenders for the best option for you when you call today.

What is Private Mortgage Insurance (PMI)?

Private mortgage insurance (PMI) is a form of mortgage insurance that may be required with certain types of loans. If you default on your loan, PMI protects your lender. In the case of a Conventional Loan, you will be required to pay PMI if you put less than 20% down.