Conventional Mortgages

Conventional mortgages are the most popular and common type of mortgage for homebuyers, but it is important to know all your options in determining which type of mortgage is best for you.
 

Benefits of a Conventional Fixed Rate Mortgage

  • A set interest rate makes monthly payments easy to budget for
  • You can choose from a variety of terms
  • Easy to understand

We are here to help you!

With so many options, it can be difficult to know which mortgage is the best option for you or even where to start. That's where our lending pros can help! Contact us online or visit one of our 10 branches in West Central Arkansas and the River Valley: Mena, Paris, Wickes, Hatfield, Caulksville, Clarksville, Ozark, Waldron, Booneville, and Russellville. 
 
A conventional mortgage is a fixed interest rate on your mortgage, meaning that your interest rate will not change over the life of your loan. You will be able to budget for a known monthly payment until your mortgage is paid in full. 
 
A fixed-rate mortgage has an interest rate that is locked in when you obtain a loan. Some homebuyers prefer these because both their interest rate and monthly payments will not change, which offers predictability.

A variable-rate mortgage, also known as an adjustable-rate mortgage (ARM) has an interest rate that will be set for a period of time, with annual adjustments based on market rates. For example, if you have a 5/1 ARM your initial interest rate will be set for five years, with annual adjustments each year after.

Variable-rate mortgages often start with a lower interest rate than a fixed-rate mortgage, but that could change as interest rates fluctuate over time.

Some homebuyers prefer the predictability of a fixed rate mortgage, while others opt for an adjustable-rate mortgage if they can obtain a lower starting interest rate and anticipate that market rates will decline before their first readjustment, or they plan to sell their home before the readjustment happens.
Union Bank has partnered with First Trust Home Loans. Through this partnership, your Union Bank lending pro can extend to qualified buyers an option of terms for a fixed-rate mortgage.