Is a conventional loan right for you?
If you’re looking for a mortgage with low fees, a conventional home loan may be a good option for you. If you are eligible, there are a number of benefits.
Benefits of a conventional loan
- Save Money: With a down payment of 20% or more, you won’t need to pay for mortgage insurance.
- Flexible Terms: Choose what mortgage term works best for you! Options include 30, 20, 15, and 10 year terms.
- Low Down Payment Option: It’s possible to take out a conventional loan with a down payment of just 3%.
Conventional loan eligibility requirements
- A good credit score of 620 or higher
- A down payment which can be as little as 3%
- Consistent and documented income
- A low debt-to-income ratio
Check out what your monthly payment could be by using our Conventional Mortgage Calculator...
This calculator is made available to you as an educational tool only and calculations are based on borrower-input information. This is not an advertisement for the above terms, interest rates, or payment amounts. This is not an advertisement to extend credit as defined by Regulation Z nor an application for credit as defined by RESPA/Regulation X.
The information is meant for educational purposes only, the approximate origination charges, and total approximate funds needed to close is just an illustration and may not be accurate to your personal loan scenario. Actual fees and costs and payments may vary. As a result of refinancing, your total finance charges may be higher over the life of the loan. This is not a commitment to lend. Not all borrowers will meet the requirements necessary to qualify. Rates and terms are subject to change based on market conditions and borrower eligibility. Monthly Payment does not include taxes and insurance. Your payment obligation will be higher. APR is not shown – see our website for assumptions and loan terms. Certain limitations apply, call for details.
Your actual rate, payment, and costs could be higher. Get an official Loan Estimate before choosing a loan.
Results received from this calculator are designed for comparative purposes only, and accuracy is not guaranteed. We do not guarantee the accuracy of any information or inputs by users of the software.
Principal & Interest (P&I)
$
PMI
$
Taxes & HOA
$
Homeowners Insurance
$
Purchase Price
Home Value
$
Down Payment
$
Current Mortgage Balance
$
Cash Out
$
Total Loan Amount
New Loan Amount
$
Home Equity After Cash Out
$
Estimated Taxes & Insurance
Property taxes are generally estimated to be 1.2% of the home's value, but may vary based on your location. Annual homeowners insurance is roughly 0.35% of the home's value but can change based on insurer. Your loan specialist can help you determine property tax and insurance rates in your area.
PMI
The PMI (Private Mortgage Insurance) is a mortgage lenders' protection in the event of a default. PMI is paid monthly as part of your mortgage payment to the lender. Once a borrower has paid the equivalent of the 20% down payment, PMI can be removed from the monthly mortgage payment.
Estimated Payment
$ /mo
Loan amount
$
Down payment
$
Cash Out
$
Home Equity After Cashout
$
Interest rate
Loan term
Taxes & insurance included?
Property tax
Homeowner's insurance
$
Mortgage insurance
$
HOA dues
$
Payment Breakdown
Amortization
Principal vs. Interest
Amortization Schedule Breakdown
Our detailed amortization schedule breaks down your mortgage payments, showing how they are split between interest and principal over the life of your loan.
Note: The actual monthly payment may be higher than what is shown here, as this schedule does not account for variable costs such as property taxes and home insurance, which are often included in your total mortgage payment.
- Principal payments: $$240,000 (the amount borrowed)
- Interest payments: $$297,554 (the cost of borrowing)
Get started by using one of our NO OBLIGATION tools!
Check out our other mortgage calculators
Access our top-rated mortgage calculators to expertly assess your financing options, compare various loan types, and make informed decisions for your home buying journey.
