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Standard Mortgage   

There are so many different types of mortgages out there even some that are the same type of mortgage with all different names. Some of these include a standard mortgage, a traditional mortgage, and a conventional mortgage. All of these mortgages are the same mortgage, just with a different name. Because a standard mortgage is one of the most commonly used mortgages, you should study to find out what that type of mortgage is. 

 

A new loan or a mortgage refinance can be considered a standard mortgage. It has to be a fixed rate mortgage, not an adjustable rate or balloon mortgage in order for it to be considered a standard mortgage. Once you have your interest rate locked in, it will stay at that rate for the entire term of the loan, whether it is fifteen years or thirty years. The principal and interest payments will always stay the same until the entire loan is paid off after the term is up. 

 

You will have to have a down payment in order to get mortgage refinancing or a typical standard mortgage. The down payment could be anywhere between three and twenty percent of the homes value. The lender is taking a risk when they lend you money, so the down payment shows him that you can save large amounts of money and that you are responsible enough to pay the monthly payments so that it does not put him in a bad situation as well. 

 

Although different lenders offer different options and different rates, a standard mortgage will typically have all the same qualification requirements between different lenders. If you are applying for a standard mortgage, most of the lenders will require you to have good credit history, a stable job, etc. You will also have to provide documentation of all these requirements to any lender. If you are looking into getting a bad credit mortgage and can meet the requirements, it will also be considered a standard mortgage. 

 

There is a lot of competition between lenders for your business, so one of the major differences in a standard mortgage between lenders is the interest rate and closing costs. You will want to compare these between the lenders you are looking at. A lot of people will look into a standard mortgage to begin with, and if they do not qualify for that, then that is when they will go looking for something more tailored to their situation.