Conventional Fixed-Rate Loan

There are two easy ways to apply: 1) apply online anytime at SCCU.com, or 2) apply by phone with Express Services, by calling your local number below:
Our Express Services Associates will answer your questions, help you find the mortgage that's right for you, and take your application over the phone in just minutes. Once your application is completed, your personal Mortgage Representative will contact you within one business day. We'll keep you informed every step of the way.

Getting pre-approved for a conventional fixed rate mortgage is a great first step to take before you make an offer on a house. With pre-approval in hand, sellers and real estate agents will know that a lender is willing to finance your purchase, and you will know the maximum mortgage amount you may qualify for.  

To become pre-approved, you will need to provide much of the same information that will be needed for your mortgage application, such as tax returns and W-2 forms. If you own a business or are an independent contractor, additional documentation will be required.

Space Coast Credit Union provides pre-approvals in just minutes. To learn more, call Express Sales today:

• Brevard: 321-752-2222
• Broward: 954-704-5000
• Miami-Dade: 305-882-5000
• All other areas: 800-447-7228

Are you looking for a mortgage payment that will not change, or need a loan amount higher than the FHA's limit in your county? If so, a conventional fixed rate mortgage may meet your financing needs. With a monthly payment in which the total of the principal and interest remains the same, this type of mortgage is popular with homeowners who prefer a house payment budget they can rely on over time. Conventional fixed-rate mortgage loans can also offer faster processing and competitive interest rates.

At Space Coast Credit Union, you'll enjoy a fast application process either online or over the phone, no application fee, and up to 95% financing. Contact us today to learn more about the advantages of our conventional fixed rate mortgages or start your application online now.

Certain conditions determine whether a particular mortgage loan will require you to pay private mortgage insurance (PMI). If your down payment is less than 20% of the full purchase price of the property you are buying, private mortgage insurance premiums, typically paid monthly, will be required. PMI is usually also required if you refinance with a conventional loan and your home equity is less than 20% of the appraised value of your home. Anytime PMI is required, be sure to factor it into your potential total monthly payment, which will include principal and interest, as well as real estate taxes and homeowner's insurance if those are not paid separately.

Other types of mortgage insurance may be required on other types of loans as well. A Federal Housing Administration (FHA) loan, for example, requires FHA mortgage insurance regardless of the amount of down payment.

The advantages of conventional mortgage loans include:

• No private mortgage insurance (PMI) is required if the loan-to-value ratio is 80% or better
• They are available for primary residences, investment properties and second homes
• They have higher loan limits than Federal Housing Administration (FHA) mortgage loans
• Conventional fixed rate and adjustable rate terms are available

There are two parts to the definition of a conventional fixed rate mortgage:

• A conventional loan is one that is not insured or guaranteed by any federal government agencies, such as the Veterans Administration (VA) does with VA home loans or the Federal Housing Administration (FHA) does with FHA loans. Instead, it is backed by private lenders. A conventional loan must also be able to meet Fannie Mae and Freddie Mac requirements, since most lenders sell conventional mortgage loans to one of these entities.
• A fixed rate loan is simply a mortgage that has an interest rate that remains the unchanged throughout the life of the loan, which is typically 15 or 30 years.

There is no standard guidance on required down payment amounts or percentages for conventional fixed rate mortgages. Depending upon the lender and the loan program, a down payment is often between 5% and 20% of the property's sale price, although 97% financing may also be available to qualified borrowers.

When comparing down payment requirements on various loans, keep in mind that putting down less than 20% on a conventional fixed rate loan will require you to pay for private mortgage insurance (PMI), so be sure to factor that into the overall costs of any conventional mortgage and into your monthly payment total.

The most common conventional fixed rate mortgages have terms of either 15 or 30 years. The one that's best for you depends in part upon your desired monthly mortgage payment and the total amount you're willing to pay over the life of your mortgage loan. In general, the differences between interest rates on the two terms lengths are:

• 30-year fixed mortgage rates are typically higher
• 15-year fixed mortgage rates may be as much as 1% lower

Other differences between the two types of fixed rate mortgages are:

• A 30-year fixed rate mortgage will give you a lower monthly payment, but you will pay more in total interest over the full life of the loan. A 30-year loan may be best for you if you have income that varies or if your monthly cash flow is a concern.
• A 15-year fixed rate mortgage will help you pay off your mortgage much faster, but your monthly payment will be higher. This mortgage loan is good for borrowers who know they will be able to comfortably make higher monthly payments.

At Space Coast Credit Union, we offer a full range of mortgage terms with fixed rates for 10, 15, 20 and 30 years. Whichever term is right for you, there are no prepayment penalties and you may make additional payments at any time. We also offer great rates and low closing costs, and never have hidden fees. Plus, our Exclusive Interest Rate Guarantee³ means that if rates have decreased when it's time for you to close on your mortgage loan, we pass the savings on to you. Apply online now to get fast pre-approval or contact our helpful loan officers today.