CONVENTIONAL LOANS
What is a Conventional Loan?
What is a Conventional Loan?
Conventional loans are the most common type of mortgage, offering flexible terms, competitive interest rates, and down payments as low as 3%.
Unlike government-backed programs, conventional mortgages are provided by private lenders and follow conforming loan limits. They’re a strong choice for buyers with good credit, steady income, and savings for a down payment.
At Qualified Home Mortgage, Harry Protopappas helps borrowers compare options and structure a loan that fits their goals.
NEXA Mortgage, LLC offers conventional fixed rate loans, adjustable rate loans and interest only loans:
Fixed Rate
With a fixed rate loan, your rate is fixed and your payment remains the same throughout the length of your loan (i.e. 30-years, 25-years, 20-years, 15-years or 10-years) A fixed rate loan is an excellent choice if you plan to live in the home for many more years.
Adjustable Rate
With an adjustable rate loan, your rate will adjust and your payments will fluctuate based on changes in the market. However, the rate and payment remains unchanged during the introductory period which could be 3, 5 or 7 years. The initial rate for an adjustable rate mortgage is usually lower than that of a fixed rate loan. After the introductory period expires, the interest rate is subject to adjust at predetermined periods, usually every six months. The rate adjustments are based on market interest rates and the adjustment caps limit how much your interest can adjust in a specified period of time. An adjustable rate mortgage is a great choice if you don’t plan to own the home for a long period of time.
Interest Only
With an interest only loan, you only pay the interest on the principal balance of the loan for a set period of time (i.e. 5-years or 10-years) with the principal balance remaining unchanged for that period of time. Once the interest only period is up, the principal balance of the loan is then amortized for the remaining term of the loan (i.e. 20-years or 25-years). An interest only loan is a good choice if you are looking for more flexibility as your initial payments will be less for the first 5 or 10 years.
The Details are Important
Loan to value ratios are often overlooked by homebuyers. For most, the interest rate and loan term are the more important items. However, the loan to value ratio is a key factor in your application. Loan to value ratios vary depending on the type of property you are looking to purchase.
If your purchase is for a property that is a two-family, three-family or a four-family residence, please call Nexa Home Mortgage to receive the maximum loan to value ratios.
Please reach out to me with any questions. My goal is to make this a 5-star experience for you!
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.NEXA Mortgage - NMLS# 1660690
5559 S Sossaman Rd Building 1 #101, Mesa, AZ 85212
https://nmlsconsumeraccess.org/EntityDetails.aspx/COMPANY/1660690
NEXA Mortgage LLC is an Equal Housing Lender
Qualified Home Mortgage – Powered by NEXA Mortgage
Steven “Harry” Protopappas, Mortgage Loan Originator
NMLS #2543750| Licensed in California, Nevada, and Texas
📞 (619) 815-7100 | ✉️ [email protected]
.Notice To Texas Loan Applicants: Consumers wishing to file a complaint against a mortgage banker, or a licensed mortgage banker residential mortgage loan originator, should complete and send a complaint form to the Texas Department of Savings and Mortgage Lending, 2601 North Lamar, Suite 201, Austin, TX 78705. Complaint forms and instructions may be obtained from the department’s website at www.sml.texas.gov https://bit.ly/3B5pAfz
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