Conventional Loan Mortgage Calculator
Conventional Mortgage Loan
Conventional loans are the most common mortgage type, not backed by a government agency. They typically offer the best rates for borrowers with strong credit and a solid down payment.
= $80,000
Payment Breakdown
Conventional Loan Requirements
- •Minimum 620 credit score (680+ for best rates)
- •3-20% down payment
- •Debt-to-income ratio below 43-50%
- •PMI required if down payment less than 20%
- •Stable employment and income documentation
Pros
- +PMI cancellable at 20% equity
- +Available for primary, secondary, and investment properties
- +Flexible terms (10-30 years)
- +Higher loan limits than FHA
- +No upfront mortgage insurance fee
Cons
- −Higher credit score requirements than FHA/VA
- −PMI required with less than 20% down
- −Stricter debt-to-income requirements
- −May require larger reserves
- −Rates depend heavily on credit score
Conventional Loan Payments by Home Price
| Home Price | Down (20%) | Loan Amount | Monthly P&I | Total Interest |
|---|---|---|---|---|
| $150,000 | $30,000 | $120,000 | $798 | $167,411 |
| $200,000 | $40,000 | $160,000 | $1,064 | $223,214 |
| $250,000 | $50,000 | $200,000 | $1,331 | $279,018 |
| $300,000 | $60,000 | $240,000 | $1,597 | $334,821 |
| $350,000 | $70,000 | $280,000 | $1,863 | $390,625 |
| $400,000 | $80,000 | $320,000 | $2,129 | $446,428 |
| $450,000 | $90,000 | $360,000 | $2,395 | $502,232 |
| $500,000 | $100,000 | $400,000 | $2,661 | $558,036 |
| $600,000 | $120,000 | $480,000 | $3,193 | $669,643 |
| $700,000 | $140,000 | $560,000 | $3,726 | $781,250 |
| $750,000 | $150,000 | $600,000 | $3,992 | $837,053 |
| $800,000 | $160,000 | $640,000 | $4,258 | $892,857 |
| $900,000 | $180,000 | $720,000 | $4,790 | $1,004,464 |
| $1,000,000 | $200,000 | $800,000 | $5,322 | $1,116,071 |
$400,000 Conventional Loan by Rate
| Rate | 15-Year | 30-Year | Total Interest (30yr) |
|---|---|---|---|
| 5.5% | $2,615 | $1,817 | $334,093 |
| 6% | $2,700 | $1,919 | $370,682 |
| 6.5% | $2,788 | $2,023 | $408,142 |
| 6.75% | $2,832 | $2,076 | $427,185 |
| 7% | $2,876 | $2,129 | $446,428 |
| 7.25% | $2,921 | $2,183 | $465,867 |
| 7.5% | $2,966 | $2,237 | $485,495 |
| 8% | $3,058 | $2,348 | $525,297 |
True Cost: Conventional Loan on a $400,000 Home
Guide to Conventional Loan Mortgages
Conventional Mortgage Loan (Conventional Loan) loans are designed for specific borrower profiles. Understanding the nuances helps you decide if this loan type fits your situation.
- Down payment flexibility. Conventional Loan loans require as little as 3% down ($12,000 on a $400,000 home). However, lower down payments mean a larger loan and potentially mortgage insurance.
- Rate considerations. Typical Conventional Loan rates around 7% are near conventional rates. Shopping multiple lenders is especially important to get competitive pricing.
- Loan limits matter. Conventional Loan loans cap at $766,550 in most areas. Homes above this threshold require a jumbo loan or larger down payment.
- Compare before committing. Even if you qualify for a Conventional Loan, compare it against conventional and other loan types. The best loan depends on your down payment, credit score, and long-term plans.
Frequently Asked Questions — Conventional Loan Loans
What is a Conventional Loan loan?
Conventional Mortgage Loan (Conventional Loan) is a mortgage program not backed by a government agency, typically offering competitive rates for borrowers with strong credit.
What is the minimum down payment for a Conventional Loan?
The minimum down payment is 3% ($12,000 on a $400,000 home). This low down payment makes homeownership more accessible, though you'll pay mortgage insurance.
What credit score do I need for a Conventional Loan?
Most lenders require 620+ for conventional loans, with the best rates at 740+. Higher scores generally unlock lower rates.
What is the monthly payment on a Conventional Loan?
On a $400,000 home with 20% down at 7%, the monthly payment is $2,129. This is principal and interest only — taxes, insurance, and any mortgage insurance are additional.
Does a Conventional Loan require mortgage insurance?
With less than 20% down, you'll pay PMI (~0.5-1.5% of the loan annually). At 20% down, that's roughly $187/month.
What is the Conventional Loan loan limit?
The Conventional Loan loan limit is $766,550 in most areas (higher in high-cost markets). Loans exceeding this amount require a jumbo loan.
How do I apply for a Conventional Loan?
Start by getting pre-approved with a lender. You'll need proof of income, tax returns, bank statements, and a credit check. Compare offers from at least 3 lenders to ensure competitive rates.
Is a Conventional Loan better than a conventional mortgage?
Conventional loans are ideal for borrowers with strong credit (700+) and 20% down — you avoid mortgage insurance and often get the best rates.