Conventional Fixed-Rate Mortgages
Steady payments for the life of the loan
A conventional fixed-rate loan is the most common type of mortgage. The interest rate is fixed at the beginning and remains the same throughout the life of the loan, so your principal and interest payment amount will never change. If you’re planning to stay in your home long term and want the stability of having a consistent payment amount, an SCCU Conventional Fixed-Rate home loan may be the perfect, steady option for you!15
Product Features
-
Consistent Principal & Interest Payment Over the Life of the Loan
-
Down Payment As Low As 5%16
-
Additional Principal Payments Allowed, with No Prepayment Penalty
-
Variety of Terms and Years Available
-
SCCU HomeAdvantage, Making You Eligible to Earn Thousands in Cash Rewards19 at Closing
-
No Closing Costs Option17
- Fast Pre-qualification Decisions, Online or Over the Phone
- No Intangible Tax21
- SCCU Member Service for the Life of the Loan
- SCCU Interest Rate Guarantee18
| Terms |
Up to 30 Years |
|---|---|
| Application Fees |
None |
| Pre-payment Penalties |
None |
| Intangible Tax |
None |
| Origination Fee |
$1,100 plus .25% of loan amount |
| Term | Rate "As Low As" | APR* "As Low As" | Example Loan Amount | Example Monthly Payment |
|---|---|---|---|---|
| 10 Years - Purchase or Refi | 6.250% | 6.530% | $200,000 | $2,245.60 |
| 15 Years - Purchase | 6.375% | 6.574% | $200,000 | $1,728.50 |
| 15 Years - Refinance | 6.500% | 6.700% | $200,000 | $1,742.21 |
| 20 Years - Purchase or Refi | 6.875% | 7.037% | $200,000 | $1,535.63 |
| 30 Years - Purchase | 6.875% | 6.999% | $200,000 | $1,313.86 |
| 30 Years - Refinance | 7.000% | 7.125% | $200,000 | $1,330.60 |
Example monthly payments do not include taxes and insurance, and the actual payment obligation will be greater.
HOME LOANS: Rates based on creditworthiness. Mortgage loans are originated by Space Coast Credit Union and are subject to credit approval, verification, and collateral evaluation. Programs, offers, rates, terms, and conditions are subject to change or cancellation without notice. Certain restrictions apply. Taxes and insurance not included; your actual payment obligation will be higher.
These mortgage loan programs constitute first mortgage liens secured by the home and property. Your down payment is determined by the Loan-to-Value ratio. (90% LTV = 10% down payment). Loans exceeding 80% of the appraised value of the home require private mortgage insurance. Member responsible for any funds needed for closing costs (unless member attached a No Closing Costs option to loan) and pre-paid escrow.
Frequently Asked Questions
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 fixed-rate 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 unchanged throughout the life of the loan, which is typically 15 or 30 years.
The advantages of conventional fixed-rate mortgage loans include:
- No upfront mortgage insurance fees
- Conventional fixed-rate and adjustable-rate terms are available
- They have higher loan limits than Federal Housing Administration (FHA) mortgage loans
- They are available for primary residences, investment properties, and second homes
- The principal and interest portion of your mortgage payments do not change.
- No private mortgage insurance (PMI) is required if the loan-to-value ratio is 80% or better
Getting pre-qualified for a conventional fixed-rate mortgage is a great first step to take before you make an offer on a house. With a pre-qualification 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 gain pre-qualification for a home loan, you will need to provide much of the same information you will need for your final loan approval, such as tax returns and W-2 forms. If you own a business or are an independent contractor, additional documentation will be required.
We provide pre-qualification in just minutes. To learn more, call us today.
There are two reasons PMI could be required with a conventional fixed-rate loan.
- Your down payment is less than 20% of your home’s full purchase price.
- You are refinancing, 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.
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.
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. SCCU offers down payment options as low as 3% 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-rate mortgage rates are typically higher
- 15-year fixed-rate 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 your income 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 and pay less in total interest over the full life of the loan, but your monthly payment will be higher. This mortgage loan is good for borrowers who can 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 Guarantee18 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-qualification, or contact our helpful loan officers today.
Want to Learn More?
