What is a conventional loan?
Conventional loans are usually home loans that are not guaranteed, nor insured with the help of the federal government. This means the actual details of the loan can be a lot different than what you might hear about them.
For example, loans that adhere to requirements set out by Fannie Mae and Freddie Mac usually ask for a down payment of 3%. The Federal Housing Administration also has pretty relaxed standards that can make it possible to have a down payment of 3.5%.
Loan programs backed by the federal government, aside from those through the Federal Housing Administration, include VA loans and USDA loans. VA loans are available for active military personnel and veterans, while USDA loans are targeted towards those who are buying rural property since they are backed by the Department of Agriculture.
Smart Money Conventional Mortgages - 30-year & 15-year mortgage
All the talk it seems in the mortgage industry is focused solely on interest rates. With good reason. However, it can also be said that interest rates may be the most inconsequential part of your mortgage!
What does that mean? First, it means that we have access to the very best in interest rates and terms in the industry, bar none! However, we believe that having your mortgage accomplish a financial purpose, goes far beyond that of a rate or term. Your mortgage is a financial tool. That if utilized correctly can compliment your current financial plan or put into place a strong financial plan.
Take a moment and fill in the blanks below:
Finish this Sentence "I Want My Mortgage…..”
Making smart financial decisions at times requires you to work from the finish to start. To do everything backward to ensure you are getting exactly what you want. So as a smart mortgage customer, please finish this sentence:
"I want my mortgage payment to be ___________."
Sounds simple enough. This is something that the automotive industry has been using for decades. However, theirs is for all the wrong reasons. In the mortgage industry, this happens on the front end of transactions (purchase) often leading to the wrong product, term, and even the wrong home.
However, as a current homeowner, it’s now time to pick your plan — it’s time to pick your mortgage payment. Do you have the ability to do that? Of course you do. Banks, lenders, brokers should not be picking this for you. They don't have the full scope of your financial situation, you do. Or at the very least you will.
"I want my mortgage payment to be ___________."
Now it is time to work backward:
- By having this mortgage payment_______ and paying off _______ I can save towards _______ and fund _______ I accomplished _________________.
- By having this mortgage payment and paying off _____ I can save towards ________ and fund_______.
- By having this mortgage payment and paying off_____ I can save towards __________.
- By having this mortgage payment I will payoff ____________.
- I want my mortgage payment to be ____________________.
The goals can be many. From retirement to debt-free living to ensure your children have no student loans. All of these goals and many more can be accomplished by asking one single question and starting backward (at the goal) and come back to the sentence you just completed.
"I want my mortgage payment to be ___________."
There are many tools that will help you get there! To get there, it is breaking things down to the smallest detail. Down to the number of bags of Doritos you buy on a monthly basis. Goals – financial or otherwise – have to be broken down to the smallest detail to fully be reached. Then, you commit to that goal.
There is an old saying, "the devil is in the details." Let get into those details. Get your financial roadmap by clicking the button below.