Question 1

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

Accepted Answer

Principal and interest run $4,437 monthly at 5.875% on a 30-year fixed. Add taxes, insurance, and HOA; total housing cost typically lands $5,500–$6,200 depending on property details.

Question 2

Do I need 20% down to avoid PMI?

Accepted Answer

Yes. At 20% down ($187,500 on a $937,500 purchase), PMI cancels immediately. Below 20%, you pay PMI until you hit 80% LTV through appreciation or extra payments.

Question 3

What credit score do I need for conventional in Gilroy?

Accepted Answer

Lenders typically require 620 minimum, but 740+ gets the best rates and terms. Below 680, FHA often costs less because conventional PMI becomes expensive.

Question 4

How long does conventional closing take in California?

Accepted Answer

Brokers typically close in 21–28 days. Banks take 30–45 days. Gilroy's market is competitive, so lenders prioritize speed to win deals.

Question 5

Can I refinance a conventional 30-year fixed if rates drop?

Accepted Answer

Yes. Conventional loans have no prepayment penalty. If rates fall 0.5%+ below your current rate, refinancing usually breaks even within 2–3 years.

Conventional 30-year fixed in Gilroy