You have an option on how long you will be paying your conventional mortgage. Conventional home loans come in 15, 20, 25, and thirty-year terms.
Our “flex loan” programs allow to select any payment terms you want …. 29 years, 26 years, 23 years, 18 years, etc.
The shorter your loan payment term, the higher your monthly payments. Fortunately, a loan term of 30 years still comes with low fixed interest rates that helps home buyers budget their costs of home ownership. Conventional home loans are also a smart choice for those who know they won’t remain in their house a long time and want a shorter-term, adjustable-rate mortgage. This option comes with a lower interest rate than a fixed-rate loan.
Another advantage to conventional loans is the lack of an upfront mortgage insurance premiums (called “MIP”), even if the buyer puts less than 20% down, which is not the case with FHA and VA Loans. FHA and VA mortgages require an upfront “mortgage insurance premium” usually between 1% and 3% of the loan amount.
Conventional loans only require a monthly mortgage insurance fee (a.k.a. Private Mortgage Insurance or PMI), and only when the homeowner puts down less than 20 percent. Plus, that mortgage insurance cost is often lower than that of government-backed loans.
Conventional loan limits for Adams, Arapahoe, Broomfield, Denver, Douglas, and Jefferson Counties are $575,000. Boulder County is $644,000. Weld, El Paso, and Larimer County is $510,400.