What is a Conventional Loan in Suffolk County, NY?

What is a Conventional Loan in Suffolk County, NY?

Conventional home loans are the highest percentage of mortgages underwritten today and have the safest reputation for borrower's since the mortgage meltdown in Suffolk County, NY.  Today's conventional mortgages are not made by any governmental agencies or are they insured by the government. They are also know to those of us in the mortgage industry  as government sponsored entity or GSE loans.

Conventional Loans where created by the United State Congress when they created the financial service corporations better know as Fannie Mae and Freddie Mac.   Now Fannie and Freddie do not make the home loans, they purchase them from your lender in pools of other home loans.   There are many types of conventional home loan options available today, including fixed-rate and adjustable rate mortgages. The Safest mortgage for today's home buyers are the Fixed rates home loan products in Suffolk County, NY.

The Advantages of Conventional Loans in Suffolk County, NY

Conventional Loans have many advantages and some disadvantages, so it is a good idea for potential home buyers to meet with a mortgage broker to reivew all option out there. The Licensed Loan Officer's at The Mortgage Outlet are ready review what options might be your best before assuming that an FHA mortgage in Suffolk County NY is your best option.  The Mortgage Outlet has an ELITE home loan program for those borrowers with a 20% down payment, excellent credit and a loan balance above $ 250,000, click here to see if you qualify. 

Conventional Loans are also know as conforming  loans as they conform to the underwriting guidelines of either Fannie Mae or Freddie Mac.  Both Fannie Mae and Freddie Mac have loan limits set for each county in the country which is where we get our conforming loan limits from.  In Suffolk County, NY the conforming loan limits are $ 417,000 and high balance loan limits are $ 625,000 for 2016. These limits are re-calculated yearly based on sales in Suffolk County, NY.  Loans that exceed these limits are consider Jumbo and are not purchased by either Fannie Mae or Freddie Mac, typically these loans have a higher cost. 

For those borrowers who have less then 20% down you will be required to get some sort of Private Mortgage Insurance aka PMI.   PMI payments are heavily based on your credit and down-payment.  The higher you score the lower the monthly payment.  For those borrowers who have less then 5% down and credit scores under 699 a conventional home loan might be more expensive then an FHA home loan in Suffolk County NY.  The Licensed Loan experts at THE MORTGAGE OUTLET are ready to show what the cost differences are.  

Today's PMI programs  for conventional home loans in Suffolk County, NY are not like your parents PMI. We have our standard monthly PMI payment which can be removed once you can confirm with the PMI company that you have a 78% equity position in you home.  Should you not wish to have a monthly PMI payment you can buy out the PMI by using either a Lender Paid Mortgage Insurance, (LPMI) or Borrower Paid Mortgage Insurance BPMI. Both of these programs allow you buy out your monthly PMI payment by either getting a higher interest rate(LPMI) or pay a one time upfront fee which will allow you to buy out the monthly payments (BPMI).   The Licensed Loan Officers at THE MORTGAGE OUTLET can help guide you to what the costs are by clicking here.    

When shopping for a Conventional Home Loan in Suffolk County, NY beware of what we call in the industry as a bait and switch.  This is when lender will quote a great rate to entice you to call and start to mortgage process to find out 30 days into the process or when you try to lock in your rate that you do not qualify for this program as you do not have a 40% down payment or 740 or higher credit score or a cost of 2 points.  Lenders can get away with this as they have assumptions in very small print at the bottom of page or on another page of there Web Site.  Before getting getting excited about the interest rate in very large print find the assumption section to see of you actually qualify for that great rate. When shopping a lender on the internet always look for positive testimonials from many satisfied borrowersin Suffolk County, NY, if the lender does not have postive testimonials there is a greater chance you will not be happy with this lender. 

As a wholesale mortgage broker THE MORTGAGE OUTLET does not act this way as we know what you credit score is and your down-payment is at time of application.  All of our fees are paid by the lender and you are transparent to you the borrower so there will be no surprises down the road.  If you are not looking for any surprises in your mortgage process give the Licensed Loan Officers at THE MORTGAGE OUTLET at 631 589 3600.  See how we treat our clients by viewing our testimonials.