Conventional loans come with competitive interest rates, that tend to reward higher credit scores with lower rates. This is a good reason to research your credit score and credit history before you decide it’s time to buy.

If you have a low-end credit score, you’ll have time to repair it, and improve your score, potentially save a grip of money over time with the reward of a better interest rate on your loan.

You can put as little as 3% down to purchase your home with a conventional loan. It does require mortgage insurance if you choose this route, which increases the cost, but unlike a government loan, such as an FHA, the mortgage insurance does not need to last for the life of the loan.

Once you have enough equity in your home to reach the 80% LTV (loan-to-value ratio) threshold (of your original purchase price or appraised value), your mortgage insurance goes away.

Borrowers who want to pay off their home quickly and save money on interest payments can opt for a shorter term 15 or 20 year loan. Some lenders even offer as low as 10 year terms and intervals like 17, 22, 25 and 27 year terms to pay back a conventional mortgage. Making larger payments on a short-term loan, if feasible, can save tens of thousands, if not hundreds of thousands of dollars for borrowers.