When you’re buying a home in Charlotte or any of the surrounding communities, whether it’s a house for sale in Matthews, a Mint Hill home for sale, or a house for sale in Weddington, you’re probably going to need to borrow money from a lender by way of a mortgage.
(If you’re a first-time buyer or a move-up buyer, you could be eligible to buy a home with no money down and no PMI).
What is a Conventional Loan?
A conventional loan is what you get when you borrow money from a lender to buy something – in this case, a house. You can get this type of loan from a bank, a savings and loan, a mortgage broker that funds its own loans, or a credit union.
Typically, conventional loans last between 15 and 30 years, although there are other options available in many cases.
Fixed-Rate and Adjustable Mortgages
A fixed-rate loan is one in which your interest rate stays the same, no matter what the market does, for the life of your loan.
An adjustable-rate mortgage is one in which your interest fluctuates at set intervals (usually each year after an initial period of 5, 7 or 10 years where it’s fixed) based on what the market does.
Are You Buying a Home in Charlotte?
Charlotte is a fantastic place to live, and we’d love to have you join us.