Conventional Loans Conventional loans are what most people envision when they speak of the mortgage market. When a borrower wishes to refinance an existing mortgage they usually have in mind the standard 15 to 30 year, fully documented, long form conventional loan which is obtained from a bank, savings and loan association or mortgage company. Some insurance companies have conventional mortgage loan departments.
 In
contrast to the home equity loan which usually runs a term from 3 to 15 years, the conventional loan
usually runs from 15 to 30 years. Additionally, compared to the
quick/easy qualifier home equity loan which does not require
lengthy documentation including credit reports, the conventional
loan requires full documentation including credit reports,
income verifications from employers and financial statements and
costs are less. Many conventional loans have advance
charges and fees. Mortgages have evolved over the years, especially in the last decade. New loan programs have been introduced which include a myriad of adjustable rate and fixed rate mortgages. Prospective borrowers should study several mortgage plans and discuss the elements of each with a conventional loan officer before applying. |
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