Conventional Loan Calculator
Calculate your conventional mortgage payment including principal, interest, PMI, taxes, and insurance.
Conventional Mortgage Calculator
Enter your home details to calculate monthly payments and total costs
Understanding Conventional Loans
What is a Conventional Loan?
A conventional loan is a mortgage not insured by government agencies like FHA, VA, or USDA. These loans follow guidelines set by Fannie Mae and Freddie Mac. They typically require better credit and larger down payments but offer competitive rates and terms.
Conventional Loan Requirements
- Credit score: Minimum 620 (740+ for best rates)
- Down payment: 3-20% (20% to avoid PMI)
- Debt-to-income ratio: Usually below 45%
- Stable income and employment history
- Property appraisal required
PMI (Private Mortgage Insurance)
- Required when down payment < 20%
- Typically 0.5-1% of loan amount annually
- Can be removed at 20% equity
- Automatically cancels at 22% equity
- Different from homeowners insurance
Conventional vs Government Loans
- Conventional: Lower fees, stricter requirements
- FHA: Lower credit requirements, higher fees
- VA: No down payment for veterans
- USDA: No down payment for rural areas