Conventional loans are the best loans when you have solid credit. Your rate is based on your percentage of equity, your credit score, and the purpose of your transaction. The less equity in your house, lower the credit score, and/or if you are looking to get cash out, then the higher the rate.
Cash out is $2,000 or 2%, whichever is more, in cash in hand or paying off any debts not used to acquire the house for the purchase. These conventional loans are generally sold off to Fannie Mae or Freddie Mac.
You are required to put down 5% on a purchase if you have owned a home in the past 3 years. If it is your first home purchase in the last 3 years, then you only need to put down 3%.
Loans that have less than 20% down have some form of private mortgage insurance (PMI). PMI can be in the form of a monthly payment, and upfront 1 time fee, a combination of both of those, or a higher rate to buy it out.
At Best Rates Mortgage, we look at every scenario available for you to see which option makes the most financial sense for your situation. No matter what we have the lowest rates available for every option. For more information on conventional loans, or any home loan, please fill out the Quick Quote to the right.
At Best Rates Mortgage once you close your loan, we don’t stop working for you. We continually follow the market so when there is a chance to take advantage of a rule change or rate change we let you know. Our goal is to be your first call whenever you, a family member, or friend needs help with financing a home. If you are located in St. Louis, St. Charles or anywhere else in Missouri, it doesn’t get any better than Best Rates Mortgage!