Question 1

What's the monthly payment on a $750,000 conventional loan in El Cajon?

Accepted Answer

At 5.875% APR on a $750,000 loan, principal and interest run $4,437 monthly. Add property taxes, homeowners insurance, and HOA fees—typically $1,200 to $1,600 combined in El Cajon. Total housing payment lands around $5,700 to $6,000.

Question 2

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

Accepted Answer

Yes. At 20% down (80% LTV), PMI disappears entirely. Below 20%, you'll pay PMI until you hit 78% LTV through paydown or home appreciation. PMI typically runs 0.5% to 1% of the loan annually, depending on your credit and down payment.

Question 3

Can I get a conventional loan with less than 20% down in El Cajon?

Accepted Answer

Yes. Conventional loans accept 3% down with 620+ FICO. You'll carry PMI, but it cancels automatically at 78% LTV. At 10% down, you reach 78% LTV faster than at 5% down, so the insurance cost is lower overall.

Question 4

How does my credit score affect my conventional rate?

Accepted Answer

A 740 FICO gets you 5.875% in El Cajon. Drop to 700 and you'll pay 0.25% to 0.5% more. Below 680, rates climb steeply and some lenders won't approve you. Spend three months raising your score if you're below 700.

Question 5

What's the difference between conventional and FHA in El Cajon?

Accepted Answer

Conventional at 20% down has zero insurance. FHA's mortgage insurance never cancels if you put down less than 10%. At 10% down, FHA's MIP cancels after 11 years. Conventional's simplicity wins if you can reach 20% equity.

Conventional 30-Year Fixed Mortgages in El Cajon