[BRENTWOOD, 5/23/2018]—Borrowers applying for a home loan can choose between a government-backed mortgage and a conventional mortgage. Mortgage Investors Group recommends conventional mortgages because of its many advantages.
Conventional Mortgage Explained
A conventional mortgage refers to a type of loan that any government entity does not offer. Often referred to as conforming mortgages, the two differ. A conforming mortgage applies to a loan with underlying terms and conditions that meet the funding criteria.
Conventional mortgages, on the other hand, depict two-thirds of a homeowner’s loan issued in the US. Private companies like Mortgage Investors Group insure conventional mortgages.
Mortgage Investors Group explains that conventional loans can entail stricter income and credit requirements. Once a borrower qualifies, however, this type of mortgage provides many advantages and proves to be more affordable in the long run.
Borrowers with excellent credit and a down payment of at least 20 percent can choose conventional mortgages as their best choice. They can use the mortgage in buying a primary home, second home, or investment property. This type of loan comes with many terms, from one to 30 years with a fixed-rate or adjustable-rate mortgage.
The advantages include the following:
• Well-qualified buyers can make a down payment as low as 3 percent
• Lower fees than Federal Housing Association (FHA) loans
• Loans typically close faster
• The private mortgage insurance (PMI) will be for borrowers who make less down 20 percent down payment on the home. Those who build enough equity in the home will have their PMI canceled
About Mortgage Investors Group
Mortgage Investors Group commits to helping Tennessee residents acquire the house of their dreams. Having served over 115,000 clients, co-founders Chrissi Rhea and Chuck Tonkin II started the lending office along with five colleagues in 1989. Today, Mortgage Investors Group has at least 25 locations spread out from Memphis to the Tri-Cities. The residential mortgage lender offers a wide range of loans, ensuring clients find the ideal home financing for their needs.
To know more about the largest independent provider of single-family residential mortgages in TN, visit https://migonline.com/ today.