A Conventional Mortgage is a great loan program and easy to understand: what you see is what you get. At Treadstone, all of our conventional loans are fixed-rate programs with a variety of payment terms available.
Conventional loans offer down payment options starting at just 3% for qualified consumers, although many people opt for higher down payments to avoid higher fees and mortgage insurance. Borrowers who put 20% down face no mortgage insurance, which can result in significant savings over the life of the loan. An additional benefit to a conventional loan is that – unlike with FHA and RD loans – once you accrue 20% equity in your home, you no longer have to pay mortgage insurance. Borrowers may also choose to finance mortgage insurance up front rather than have it being paid monthly which can save you money in the long run.