Conventional Mortgage Loans

We offer low rates, ideal terms and a variety of affordable options—including fixed-rate and adjustable-rate mortgages. Does this sound heavenly, or what? Honestly, Mountain America can make a home loan fit your needs to the proverbial T. Try us and see.

APPLY TODAY

Conventional Mortgage Loans

We offer low rates, ideal terms and a variety of affordable options—including fixed-rate and adjustable-rate mortgages. Does this sound heavenly, or what? Honestly, Mountain America can make a home loan fit your needs to the proverbial T. Try us and see.

Conventional Mortgage Loans. A Fancy Way of Saying Flexible Financing.

Conventional mortgages provide home buyers with a greater variety of options than other home mortgages. In addition to a wider variety of mortgage uses, buyers can also set up financing options specific to their short- and long-term financing needs and property ownership plans. Mountain America Credit Union mortgage specialists are able to assist buyers in making the most appropriate choices most suitable for their needs.

Mountain America Conventional Mortgage Loans are flexible—buyers can pick financing options specific to their fiscal needs and plans for the property; they can also use the mortgage loan for several types of home investments. Here's what you can get:
  • $500 toward closing costs*
  • Up to 95% financing OAC
  • Fixed and variable rate terms available
  • Low mortgage insurance
  • Pay your mortgage locally at a branch or online
  • Gift funds can be contributed by parents or other family members
  • Available for second homes and investment properties (up to a fourplex)
  • Quick Close paperless closings available
How? You guessed it.  By applying for your Mountain America Conventional Home Loan today!
 

What is a conventional mortgage?

A conventional mortgage is a home loan offered by a bank, credit union or private lender that adheres to the loan guidelines set by Fannie Mae and Freddie Mac. A conventional mortgage is not insured or guaranteed by the federal government. Conventional mortgage terms are typically 15, 20 or 30 years, can include a fixed or adjustable rate, with maximum loan limits that vary by county and state.

A conventional mortgage with a fixed rate has a set interest rate for the duration of the mortgage, anywhere between 10–30 years. While an adjustable rate mortgage has a low introductory rate followed by occasional adjustments on a 30-year term.

What Are the Requirements of a Conventional Mortgage?

The requirements to qualify for this type of loan vary by lender, but generally depend on a buyer’s monthly income and credit history. They also require a bigger down payment, which results in smaller monthly payments. Down payments can be as small as five percent based on the lender’s preference and borrower’s credit history, but most conventional loans require 20 percent of the home’s cost. Borrowers whose down payment is less than 20 percent will need to pay for private mortgage insurance. PMI is required on the mortgage until the loan-to-value ratio reaches 80 percent.

Conventional mortgages are ideal for people with good or excellent credit. Loan terms require a credit score of 740 or higher to qualify for the best available interest rates.

Because conventional mortgages aren’t guaranteed by the federal government, they tend to be considered a greater risk for lenders. But they typically require less hurdles for borrowers compared to FHA and VA loans. This makes them ideal for those who want to buy a new home and are able to meet the income and credit requirements.

Don't wait. Apply for a Conventional Home Loan today by clicking the button below, visiting your nearest Mountain America branch, or calling 1-800-277-7703.

APPLY TODAY

 

What’s the Difference Between a Fixed and Adjustable-Rate Mortgage?

The main difference between a fixed-rate mortgage and an adjustable-rate mortgage (ARM) is the interest rate. The interest rate with a fixed-rate loan is set from the beginning and remains the same over the life of the loan while the interest rate on an ARM can go up or down during the loan term.

Fixed-Rate Mortgages

While the interest rate remains the same for fixed-rate mortgages, the amount of interest and principal differs from payment to payment, but the total monthly payment stays the same. At the beginning of the loan, most of the payment goes to interest. With each payment, more and more of the monthly payment goes to the principle. One drawback to this mortgage type is that when interest rates are high, it’s more difficult to qualify for a loan because monthly payments are more expensive.

Adjustable-Rate Mortgages

ARMs are more appealing to some homebuyers because they start with an interest rate that is below the current market rate. This lower rate will only stay in place during a fixed time interval, commonly between three to 10 years. After that inaugural period, the interest rate will fluctuate based on the ARM rules, which may result in a spike in the overall monthly payment. Additionally, the adjusted rate may even climb higher than the average rate for fixed-rate mortgage loans. Whichever loan option a buyer chooses, it’s important to weigh the pros and cons of a fixed-rate and adjustable-rate mortgage before closing on a home.

Loan Closing Made Easy

QC.jpgBuying a home just got easier thanks to Mountain America’s Quick Close paperless mortgage process.

In addition to managing your closing documents from home, you can enjoy that convenience throughout the entire loan process.
  • Apply Online—No need to call or come into the branch to start your mortgage. One click can put you on the path to homeownership.
  • Upload Documents—Now you can save a trip to the branch by uploading all of your key mortgage application documents, including paystubs and tax information, from your computer.
  • Green and Secure—At the end of a traditional loan process, you typically leave with a huge stack of paperwork. With Quick Close, only a handful of documents are printed. The rest are securely stored on a flash drive that you can take with you.
  • One Signature—Review the documents from home and then provide a digital signature at the title office. the signature is applied to the mortgage, and you’re on your way in no time.
Take advantage of a mortgage process that is quick, convenient, simple and secure. 

Apply Today

Mortgage Loan Calculator

Once you have calculated different loan options, and identified the one that meets your situation, it's time to get started on your mortgage. And we can help. Simply visit your nearest Mountain America branch, call 1-800-227-7703, or apply online by clicking the button below.

Apply Today

How to Get a Mortgage

Conventional mortgage loans are flexible, accessible loan options available for a variety of uses like refinancing, secondary property investment, or primary property investment. With fixed and adjustable rate mortgage options available for diverse time spans, Mountain America Credit Union’s conventional loans can tailor a conventional mortgage loan to be ideal for any buyer.

Conventional Versus Other Mortgage Loans

The main difference between conventional mortgage loans and other loans like VA or FHA are the insurers behind the loans. VA and FHA loans are federally insured, while conventional loans are privately insured. With FHA and VA loans, insurance is still tacked on as a premium until the loan-to-value-ratio reaches a certain percent (this depends on the length of time the mortgage loan is financed for).  Private mortgage insurance (PMI) is obtained by the borrower until the loan-to-value-ration is equal to or less than 80%; so, for example, if you –the borrower—put down 20% on your conventional mortgage loan, you do not need to purchase insurance.

Financing with a Conventional Mortgage Loan

In the current home mortgage climate, federal loans pose obstacles that conventional loans do not. VA loans, for example, are limiting because of their eligibility requirements (such as satisfactory military service) while FHA loans can be difficult to obtain owing to a recently-implemented federal housing bill.

Because conventional loans are private–even though they adhere to federal mortgage regulations—they are not as elusive.
 

Customizable Loan Options

Every home buyer has different needs and interests for their mortgage loan.  Mountain America Credit Union offers flexible financing options including the ability to choose between a fixed rate mortgage and an adjustable rate mortgage (ARM).  Here are the key differences:
  • Fixed Rate Mortgage interest rates remain stable for the duration of the loan meaning that the monthly payment remains stable.  At the beginning of a fixed rate plan, earlier payments are mostly loan interest; however, as time goes on, more and more of the payment goes toward the premium.  Fixed rate mortgages are great for buyers who:
    • Plan to be in the mortgage for a long period of time (more than 10 years)
    • Are able to lock in at a low interest rate
  • Adjustable Rate Mortgage interest rates are subject to fluctuation throughout the life of the loan, and in the current climate of lower interest rates, the result is lower mortgage payments.  Unlike a fixed-rate mortgage, the monthly payment is subject to change for the duration of the loan making budgeting a little trickier.   ARMs can be a little more complex to understand than their fixed counterparts.  Knowing the interest cap, margin, ceiling, and adjustment frequency is important for buyers entering into an ARM.  ARMs are great for buyers who:
    • Want lower initial loan payments
    • May not be in the mortgage for a long period (10 years or less)
A MACU mortgage specialist can further break down the pros and cons of each mortgage rate option.  Conveniently, MACU conventional mortgage loans are available in both fixed and adjustable mortgage rate formats.

Apply for your Mountain America Conventional Home Loan today.


View dispute and mortgage servicing contact information.

*$500 credit offer applies to new purchases only and cannot be combined with other offers. Limit one per household—while supplies last. Credit issued on closing disclosure.

Loans subject to credit approval. See current rates and terms. The minimum monthly payment for a loan with a 3.875% APR and 30-year term is $4.70 per $1,000 borrowed. The monthly obligation will be determined by the total loan amount at the time of closing and the term and interest rate of the loan. See our Loan Calculator for specific examples.  

Your actual rate, payment, and costs could be higher. Get an official Loan Estimate before choosing a loan. Information and interactive calculators are made available to you as self-help tools for your independent use and are not intended to provide investment advice. We cannot and do not guarantee their applicability or accuracy in regards to your individual circumstances. All examples are hypothetical and are for illustrative purposes. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues.

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