What is a Conventional Loan

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.

If you’re moving to Charlotte, we can help you find the perfect home. Give us a call at 704-608-2794 or get in touch with us online to let us know what you’re looking for. We’ll help you find it!

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