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  • The most common home loan in the United States is a 30-year fixed rate mortgage loan. With this kind of home loan, your monthly payments for interest and principal never change. Changes to your property taxes and home owners insurance could change your monthly payment.

    This is different from an Adjustable Rate Mortgages (ARM) that may change at specified intervals (for example, every year) depending on changing market conditions.

    Fixed-rate mortgages are available on a variety of terms, with a 15-year, 20-year, or 30-year term being the most prevalent.

    Fixed-rate fully amortizing loans have two distinct features. First, the interest rate remains fixed for the life of the loan. Secondly, the payments remain level for the life of the loan and are structured to repay the loan at the end of the loan term. With Standard Mortgage’s fixed-rate terms, your property taxes and homeowners insurance may increase, but, generally, your monthly payments will be stable.

    During the early amortization period, a large percentage of the monthly payment is used to pay the loan interest . As the loan is paid down, more of the monthly payment is applied to principal.

    A Conventional loan simply means the loan is not a government backed loan, like an FHA loan, or a VA loan.

    Conforming conventional loans are mortgage loans that meet Fannie Mae and or Freddie Mac underwriting requirements. Income, credit, and property requirements must meet nationally standardized guidelines. Conventional loans are subject to loan amount limits that are set by Fannie Mae and Freddie Mac.

    Loan limits vary based on the region in which the property is located as well as the number of legal units contained in the property.

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