American Prime Rate LLC. – Mortgage Loan Broker Orange CA

Conventional Loans

A conventional loan is a mortgage that isn’t backed by the federal government. Instead, it follows standard lending guidelines and is offered through private lenders such as banks or credit unions.

For clients planning to stay in their home long term, a Fixed Rate Mortgage is a great way to secure a stable, low interest rate for the entire life of the loan. American Prime Rate offers fixed-rate options with 30, 25, 20, 15, and 10-year terms.

For clients expecting a rise in income or property value, planning a shorter stay in their home, or looking to lower their monthly payments, an Adjustable Rate Mortgage (ARM) may be a smart choice. As the name suggests, ARMs feature interest rates that adjust at set intervals.

Conventional home loan document with calculator.

Benefits of Fixed Loans

Benefits of ARM Loans

5% minimum down payment required on purchase

Post- bankruptcy: can qualify after 4 years

Post-short-sale: Can Qualify after 2 years (LTV restrictions may apply)

Post-foreclosure: can qualify after 7 years

Minimum credit score - usually 620

An ARM is a great option for clients who intend to refinance or sell a home in an expected time frame.5% minimum down payment required on purchase

Buyers can save thousands of dollars in payments during the initial fixed period vs. a fixed rate loan with a higher rate.

The 7-year and 10-year ARMS are the most popular ones in this category of loans.

Savings can be used to pay down other debt.

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