Conventional Loans in Redding, CA 

Conventional loans, which are not backed by the federal government, are loans that meet guidelines set forth by Fannie Mae or Freddie Mac, who provide a secondary market for mortgages. The underwriting guidelines are tighter than other types of mortgages, but the short and long term costs can be significantly lower to the borrower(s).

Is A Conventional Loan For Me?

If you have good credit, have not had any major derogatory credit events in the past 7 years, and can afford to put at least 3% down, a Conventional Loan may be the right choice. Your monthly payment could be much more affordable compared to other programs such as FHA. 
*For loan examples and more information please visit www.apmortgage.com/disclosures. 

Types of Conventional Loans

FIXED-RATE MORTGAGES

Fixed-rate fully amortizing loans are the most popular type of mortgage loan, as they offer a monthly payment that does not change over time, and result in a portion of the loan’s principal being paid down every month. Many borrowers find fixed-rate home loans to be the best mortgage for their needs. Most fixed-rate mortgages are for loan terms of 15 or 30-years. A 30-year amortizing loan typically has lower payments than a 15-year loan, but a slightly higher interest rate than a 15-year loan.
*For loan examples and more information please visit www.apmortgage.com/disclosures. 

ADJUSTABLE-RATE MORTGAGES

An adjustable-rate mortgage has a short-term fixed-rate term during which an interest rate is fixed. After this initial term, the interest rate on an adjustable-rate mortgage or “ARM” loan can change periodically at certain intervals. This adjustment permits the lender to adjust the interest rate to match changing interest rate environments. For example, a 3/1 ARM loan offers a fixed-rate for the first three years, adjusting once a year thereafter. A 5/1 ARM loan offers a fixed-rate for the first five years, adjusting yearly thereafter. At each adjustment the lender sets the interest rate by adding a margin or spread to the then current index rate. *For loan examples and more information please visit www.apmortgage.com/disclosures. 

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