Are you a resident of Tennessee and looking for conventional loan options to finance the purchase of your home?
At e-Finance Mortgage LLC we can help you get all the right information, and qualify for the right loan according to your needs.
Conventional home loans are ones that are not insured by any government agencies. Most mortgage loan options such as USDA loans, VA loans, and FHA loans are backed by government organizations, which make them convenient for borrowers with comparatively lower credit and limited cash to apply and qualify for one.
There are two types of conventional loans—conforming and non-conforming. Conforming conventional loans need to be in line with specific criteria set by Fannie Mae and Freddie Mac in order to be eligible for purchase by them. Conventional loans are ideal for those Tennessee residents who have considerably strong credit and income, can afford to make the down payment, and are looking to borrow an amount that is beyond the loan limit that can be backed by government agencies.
Typically, conventional loans in Tennessee call for a 20% down payment, which can help borrowers in avoiding private mortgage insurance (PMI). There are down payment options as low as 3% available, but the buyer may still need to make PMI payments. The upside is that the mortgage insurance can usually be cancelled when 20% equity is acquired.
Tennessee Fixed and Adjustable-Rate Conventional Loan Options
Conventional loan options are can be acquired with adjustable rate, fixed rate and hybrid options. Depending on the needs and the specific situation of the borrower, the type of rate can be chosen.
Fixed rate mortgage options mean that the monthly payments stay the same throughout, as the interest rate remains constant. This gives considerable peace of mind to the homeowner, as it offers a stability that could be much-needed. These loans are available in the form of 15 year, 20 year, and 30 year long-term loan options.
An adjustable rate mortgage, also known as ARM, means that the interest rate varies depending on the conditions of the market. However, this type of loan offers lower interest rates at the start, which can be particularly ideal, especially for those looking to refinance or relocate.
If you’re looking to apply for a conventional loan in Tennessee, then e-Finance Mortgage LLC can offer you all the assistance you need. We work to offer our clients with flexible loan options and competitive interest rates.
With our help, you can buy the home of your dreams or refinance your existing mortgage with ease. Looking for more information on conventional loan products available to you in Tennessee? Get in touch with e-Finance Mortgage LLC today!