What Are The Current Interest Rates For A Conventional Mortgage?

The current interest rates change daily and sometimes multiple times a day. According to Freddie Mac and as of March 30, 2023, the average rate for a 30-year fixed mortgage was 6.32% and, for a 15-year loan, it was 5.56%. The rate you get depends on current market conditions and your qualifying factors. The best way to get the lowest rate is to increase your credit score, lower your debt-to-income ratio, and make as much of a down payment as possible.

Can I Refinance My Conventional Mortgage Into A Government Loan?

You can refinance a conventional loan to a government loan, such as the FHA loan. The best loan product for you will depend on your situation.

Should I Get A Conventional Mortgage?

A conventional mortgage has many benefits, such as competitive interest rates, the potential to eliminate PMI, and unique options if you need a loan above conforming limits. However, like any loan program, there are downsides. For example, you need qualifying credit scores, low DTI, and a larger down payment if you need a jumbo or non-conforming loan.

Is A Conventional Loan Better Than An FHA Loan?

Conventional and FHA loans can be ideal options when you need mortgage financing. To decide which is better for you, determine if you meet the qualifying requirements. For example, you’ll typically need a higher credit score and lower DTI for conventional loans than FHA loans. While conventional loans allow you to eliminate PMI when you have 20% equity in the home, FHA loans require you to pay mortgage insurance premiums (MIPs) for 11 years or the entire loan term – depending on your down payment.

What Is A Conventional Loan?