What are Conventional Michigan home loans?

A conventional Michigan home loan is any loan that conforms to the standards of Fannie Mae and Freddie Mac.  These two agencies purchase thousands of similar mortgages, bundle them together and sell them as bonds on the mortgage backed securities market.  Conventional loans are not backed by other governmental agencies, like FHA and VA.

If you qualify for this type of loan, you will often pay lower fees and if your credit is good, you can obtain a lower Michigan interest rate.  Contact me to see if you qualify for a conventional Michigan home loan.  I am fully licensed in the state of Michigan and can work with anyone, anywhere in the state.

Here’s a quote from one of my many satisfied customers:

“Thank you so much for all your hard work, support, and patience — most importantly your help in our adventure of buying a house!  We appreciate everything you have done!  IKEA, here we come!” – Jennifer and Joshua

What are the benefits of a fixed rate Michigan conventional home loan?

New Executive Mortgage offers both fixed and variable rate Michigan conventional home loans.  Many people choose fixed rate mortgages because of the security and peace of mind that they provide.  If you have a fixed rate mortgage, then you know your monthly payments will not change, meaning you can budget effectively for both the short and long term.  If you have a mortgage with a variable rate of interest, then your payments can change, depending on market fluctuations.  This can leave you paying less, but often leaves you paying more each month.  Also, it can be a good move to fix your rate when the economy looks like it’s about to change and interest rates are rising.

What terms are offered for our Michigan conventional home loans?

The term of a mortgage is extremely critical for a couple of reasons.  First, it sets the length of the obligation you are undertaking.  Second, it defines the amount of interest you are going to pay over the life of the loan.  These are huge issues when it comes to building equity.

We offer mortgages with terms of 10, 15, 20, 25 and 30 years.  The longer the mortgage, typically the lower your monthly payment will be, but you will pay more mortgage interest over the course of the loan, and the interest rate will be higher.  Generally speaking, you should go for the shortest term you can comfortably afford – you’ll save potentially tens of thousands (and in some cases potentially over a hundred thousand) dollars in interest by keeping the length of the mortgage as short as you can.

Most people focus on interest rates as a way to save money on mortgages.  This is a valid approach, but playing with the length of the loan is a better way to save money.  If you can cut the payments in half by going with a shorter loan, you can save huge amounts of the total interest repaid to the lender.

Call me to discuss one of our Michigan home loans

To get started, or if you just want me to answer your questions, call me at 989.245.2230 or drop me an e-mail at kdais@newexecmtg.com.

Click on the links to learn more about Michigan FHA loans or Michigan Rural Development loans.  Click this link for Michigan Refinance options.