A conventional fixed rate mortgage in Wisconsin can be used to buy or refinance a home, investment property, second home or vacation home. This type of home loan follows the guidelines of Fannie Mae or Freddie Mac.
This loan may be used to buy or refinance many types of houses compared to how government insured loans restrict the types of houses and occupancy.
The length of a fixed rate home loan may be 30 years, 25 years, 20 years, 15 years or 10 years. The shorter the length of the loan term you choose and qualify for will usually offer a lower interest rate. A shorter loan term also gives the benefit of less interest you will pay over the life of the loan.
- Down payment amount may be as low as 5% of the purchase price for the home.
- No up-front mortgage insurance which is required in government insured loan.
- No mortgage insurance when your down payment is 20% or more.
- In some cases, escrowing property taxes and home owners insurance is optional.
Refinancing using a conventional loan is done for many reasons. Lower your monthly payment, consolidate debt, shorter loan term to pay less interest, lower interest rate, improve monthly personnel cash flow, or to fund a remodeling project are a few of the reasons to refinance your current home loan.