Explore Your Fixed-Rate Mortgage Options with The Hive
Understanding Conventional Loans
Conventional mortgages are private loans not backed by the government, following Fannie Mae or Freddie Mac guidelines. They offer better rates and terms with lower fees for those with good-to-excellent credit, manageable debt, a 5-20% down payment, and stable income. Ideal for borrowers with strong credit and a minimum 5% down payment.

Get to Know Your Choices
Conventional loans offer a spectrum of terms to fit diverse financial goals, ranging from 30-year to as short as 5-year options. These varying term lengths provide borrowers with the flexibility to choose a mortgage that aligns with their long-term financial planning and repayment preferences. Whether you're looking for lower monthly payments spread over decades or aiming to pay off your home quickly with higher payments, there's a conventional loan tailored to your needs.
30 Year Fixed Load
Lowest monthly payment.
15 Year Fixed Loan
Lower rates than other 30 and 20 year loans.
20 Year Fixed Loan
Lower monthly payment.
10 Year Fixed Loan
Lower rate, pay off your loan and build equity faster.
How do FRM Loans Work?
Fixed-rate mortgages are loans where the interest rate stays the same for the entire term of the loan, ensuring that your monthly mortgage payments remain unchanged. This consistency makes budgeting easier because you can predict your housing costs for the future, without worrying about interest rate fluctuations. The main benefits include stability in your monthly payments, protection against rising interest rates, and the simplicity of having a straightforward payment schedule. It's an ideal choice for those who plan on staying in their home for many years and prefer the predictability of fixed expenses.
FAQs for Conventional Fixed-Rate Mortgage Loans
What is a conventional FRM mortgage?
A conventional FRM mortgage (Fixed-Rate Mortgage) is a home loan offered by a private lender rather than a government agency like the Federal Housing Administration (FHA) or the Department of Veterans Affairs. What sets it apart? A consistent interest rate and stable monthly payment for the life of the loan. It’s ideal for buyers planning to stay in their home long-term.
We help residents of Bangor, Elisworth, and other cities across Maine with conventional fixed-rate loans.
How is a fixed-rate mortgage different from an ARM?
The difference comes down to predictability. A fixed-rate mortgage keeps the same interest rate throughout, while an adjustable rate mortgage (ARM) changes after an initial period. If budgeting consistency is a priority, the FRM offers peace of mind, especially when interest rates rise.
What credit score is needed for a conventional loan?
Unlike FHA loans, which cater to lower-score borrowers, conventional loans typically require a minimum credit score of 620 or higher. Higher scores often unlock better rates and remove the need for private mortgage insurance (PMI)—if you make a payment of at least 20% down.
What is PMI and when is it required?
Private mortgage insurance (PMI) is usually required if your down payment is less than 20%. It protects lenders, not you, in case of default. The good news? PMI can often be canceled once you’ve built enough equity—unlike FHA’s mortgage insurance, which tends to last the full loan term.
Are all conventional loans the same?
No. Conventional loan options vary widely. Most buyers go with conforming loans—those that fall within loan amounts set by Fannie Mae and Freddie Mac. If your loan exceeds those limits, you’ll need to consider jumbo loans, which often come with stricter qualification standards but provide more purchasing power.
What are the benefits of conventional FRM loans?
Conventional FRMs offer clear benefits:
- Stable monthly payments over the life of the loan
- No PMI with a 20% down payment
- Flexible loan terms, usually 15, 20, or 30 years
- Faster closings since they’re not tied to a government agency
- Broad property eligibility—including primary, vacation, or investment homes
Is a conventional FRM loan right for first-time buyers?
Absolutely. While FHA loans are often favored by first-time buyers, those with good credit and steady income may benefit more from a conventional FRM loan. You avoid long-term insurance costs and gain predictable payments that make long-term budgeting easier.
What role do Fannie Mae and Freddie Mac play?
These two entities help stabilize the mortgage market by purchasing conforming loans from lenders. Their backing ensures conventional loans remain competitive and widely available. If your loan fits within their limits, you may qualify for better terms and rates.
Still have a question?
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As you navigate the journey towards homeownership, remember that the right mortgage can make all the difference. We're here to help you explore your options and find the loan that fits your life perfectly. Reach out to us at The Hive Mortgage Solutions to discuss your needs and start making your dream home a reality today.