Question 1

What's the monthly payment on a $750,000 conventional loan at today's rate?

Accepted Answer

At 5.875% on a $750,000 loan, principal and interest run $4,437/month. Add property taxes, insurance, and HOA fees (if any) for your total housing cost. This assumes 80% LTV, 740 FICO, 30-year fixed, primary residence, single-family home.

Question 2

Do I need 20% down to avoid PMI on a conventional loan?

Accepted Answer

Yes. At 20% down (80% LTV), there is no PMI and no rate penalty. Below 20% down, PMI kicks in and stays until you hit 78% LTV or request cancellation at 80%. PMI typically costs $200-400/month on a $750K loan with 10% down.

Question 3

How long does it take to close a conventional loan in Oakland?

Accepted Answer

Brokers typically close in 21-30 days. Retail banks run 30-45 days. Appraisal and underwriting take 10-15 days. Your rate locks for 30-60 days depending on the lender. Faster closings happen when you're pre-approved and have clean financials.

Question 4

What credit score do I need to qualify for a conventional loan?

Accepted Answer

Minimum is 620 FICO, but 740+ gets you the best rates and terms. At 740, you qualify for this scenario's 5.875% rate. Below 680, expect rate premiums of 0.25-0.75%. Self-employed borrowers face tighter overlays regardless of score.

Question 5

Is conventional or FHA better for a $750K Oakland home?

Accepted Answer

Conventional wins at this price point. FHA's lifetime mortgage insurance costs more over 30 years than conventional's zero insurance at 20% down. FHA makes sense below $400K with limited down payment savings.

Conventional 30-year fixed mortgages in Oakland: 5.875% rate, $4,437/month on $750K