Home Buying in 22204>Question Details

Lynn, Home Buyer in 22204

what is a conventional loan?

Asked by Lynn, 22204 Fri Feb 24, 2012

I currently have a conventional loan with no PMI at 2.76% for total remaining payoff value of $197,500.

If the interest rate goes up, will my rate go up?

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Answers

3
Lynn-

It looks like you have an ARM (Adjustable Rate Mortgage). Depending on how much time you have left on your loan and what index your ARM is pegged to, it may or may not make sense. Its best to talk to a Mortgage Lender for this one.

Martin Signore
202 604-0000
0 votes Thank Flag Link Sat Feb 25, 2012
Unless your loan is an adjutable then the answer is no. The simplest explanation is that a conventional loan means you're loan was 80% or less of the purchase price.

Conventional loans can be either adjustable of fixed. adjustable rates can change, fixed cannot.

You can contact the loan officer you used and simply ask them if your rate is adjustable or not or you could check your paperwork from closing. The HUD1 will indicate this on page 3 or 4 where the terms of your loan are clearly indicated.

You may have an adjustable, or you may have paid a little upfront to buy the rate down to the 2.76% rate you've indicated and it's a fixed rate, without seeing your closing paperwork no one here on Trulia can say for certain.
0 votes Thank Flag Link Sat Feb 25, 2012
It sounds like you have an ARM. It depends on the terms of your mortgage. You are best to read the terms of your note or call the banks who holds the note to find out. Refinancing might be an option for you if you want a fixed rate.
0 votes Thank Flag Link Sat Feb 25, 2012
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