Known as the "bread and butter" of the mortgage world, Midland Mortgage conventional loans are one of two most common types of mortgage loans offered. Conventional loans are usually government-sponsored through Fannie Mae or Freddie Mac. There are many benefits to this type of loan that make conventional loans advantageous over other options. The following are three of the reasons you should be thankful for conventional loans:
When compared to other types of loans, South Carolina conventional loans have a higher approval rating. They are great for consumers with good credit and a low debt-to-income ratio, who can also pay up to 20% down on their loan, thus avoiding the private mortgage insurance (PMI). More on that next...
When you reach 20% equity, you can have the PMI removed from a conventional loan, if you were unable to afford to forego it altogether. You can also opt for PMI Advantage, which means you don’t have to pay the monthly insurance payment. You can do this by choosing to pay a slightly higher mortgage rate.
Conventional loans are also flexible when it comes to term lengths. You can choose to pay your mortgage back over the course of eight to 30 years. In addition, conventional loans can be used to purchase a wide variety of investment properties, not just a primary home, such as vacation homes. The flexibility of conventional loans are yet another reason to be thankful for there presence.
Contact us at Midland Mortgage Corporation to learn more about the many benefits of conventional loans. Let us help you determine if this or one of our other mortgage options will work best for your specific situation.