A conventional loan is a great option if you have a solid credit score and little debt. ... In most cases, borrowers save money in the long run with a conventional loan because there's no upfront mortgage insurance fee, and the monthly insurance payments are cheaper
A "fixed-rate" mortgage comes with an interest rate that won't change for the life of your home loan. ...Terms of these conventional loans typically range from 10 to 30 years.
Down payment on conventional loans start out at 3% (certain restrictions applies).
What PMI means? Private mortgage insurance
Private mortgage insurance , also called PMI, is a type of mortgage insurance you might be required to pay for if you have a conventional loan if you put less than 20% down payment.
Like other kinds of mortgage insurance, PMI protects the lender—not you—if you stop making payments on your loan. You can request the PMI to be removed from your conventional loan at 78% loan to value. Unlike FHA and USDA where the PMI is the life of the loan, no matter your down payment.