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conforming loans are conventional
loans that meet terms and conditions
set forth by Fannie Mae and Freddie
Mac.
- These two stock-holding companies
purchase mortgage loans from lending
institutions and secure them for
resale to the investment community.
- Fannie Mae and Freddie Mac establish
maximum loan amounts, income requirements,
down payment requirements, and type
of suitable properties. Loans that
do not conform to these guidelines
are referred to as non-conforming
loans.
view sample loan limits: http://www.fanniemae.com/
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the loan balance for jumbo loans are
above the maximum loan amounts established
by Fannie Mae and Freddie Mac —
thus jumbos are "non-conforming"
loans
Jumbo loans are used to buy large,
expensive homes.
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the interest rates on jumbo loans
are generally higher than rates on
conforming loan
The fixed rate can range anywhere
from 0.11 to 0.77 points higher, depending
on the region
Adjustable rates are 0.01 points
higher, but tend to narrow as the
ARM adjusts. Many of the jumbo mortgage
loans are ARMs. |
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Apply Online: get up to four lender reviews |
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homeowners are looking
to finance a home that is above
the loan limits set by Fannie Mae
/ Freddie Mac
most jumbos allow borrowers to select
the type of mortgage loan — fixed, ARM, hybrid
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the APR is
generally higher than other conforming
loans
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consider
placing more down payment to bring
the jumbo loan closer the upper
loan limits on conforming loans
if you can
afford the monthly payment on a
15-year loan, you will pay substantially
less money than on the 30-year loan
— plus your home will be paid
off in half the time — see
calculation
view our program to help payoff your mortgage in 1/3rd of the time saving your thousands in interest
— plus imagine how to use your mortgage payoff bonus to plan for college, retirement, other
see how the mortgage payoff plan works
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