A conventional fixed or adjustable loan is a type of mortgage that is not insured or guaranteed by a government agency. Offered by private lenders and investors, typically requires a higher credit score and down payment can vary compared to government-backed loans. Borrowers with solid financial profiles can access these loans for home purchases or refinancing.

Benefits of an Fixed Rate loan

• Predictable monthly payments, which is helpful for budgeting and long-term financial planning.
• No risk of “payment shock” down the road from increased interest rates.
  
• You benefit during low interest rate environments with your rate locked in for the life of the debt.

Benefits of an Adjustable Rate loan

• Lower initial rate than a fixed rate mortgage, which means a lower monthly payment and more home equity.
• Ability to take advantage of falling interest rates, without refinancing.
• Flexibility to choose a mortgage that fits your budget and needs.
• Potential to save money if interest rates remain low.

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