Types Of Mortgage Loans Birmingham AL

Mortgage Loans

With the real estate market explosion over the last 10 years, a call has gone out for unique mortgage loan programs. Bankers have been more than happy to answer the call. For many borrowers, traditional mortgage loans still fit the bill. Here’s an introduction.

1. Conforming Loans – The loans comply with requirements set down by Fannie Mae and Freddie Mac, two government sponsored entities that buy and sell loans from mortgage lenders. These entities put strict caps on the loans they will buy, with single-family homes having a mortgage cap in the range of $360,000. With the booming real estate market, many areas such as San Diego do not come close to fitting into the conforming loan market since homes average in the $600,000 range.

2. Non-Conforming Loans – Known as “Jumbo Loans”, these mortgages are written for loans that exceed the $360,000 cap mentioned previously. They tend to have slightly higher interest rates, but are readily available.

3. Bad Credit Loans – In the mortgage industry, mortgage brokers often refer to a borrower’s “paper.” This paper refers to people with less than stellar credit. “B” paper refers to relatively small problems, while “D” paper refers to bigger issues such as bankruptcy filings. The worse your paper, the more you can expect to pay in interest, points and down payment amounts. You need to carefully determine whether paying these extra penalties makes financial sense.

Interest Rates

With each of the above loans, you’ll have an option of going with a fixed interest rate or an adjustable rate. Fixed interest rates simply set a definitive interest rate that will be charged over the length of the loan. Adjustable rates typically start at a figure lower than fixed rates, but can be moved up to reflect changes in the cost of borrowing money. In many ways, you are betting whether interest rates will increase in the future.

For a great majority of people, basic mortgage loan options still suffice when it comes to borrowing money. Don’t fret if you have problems qualifying for these loans. There are many other options on the market these days.

About the Author:

Dan Lewis is a mortgage broker with thePhantomWriters Article Submission Service Featured Local Company Premiere Mortgage Corporation 205-871-3100 2923-B Crescent Avenue Birmingham, AL http://www.mymtg4u.com Related Articles Mortgage APRs Birmingham AL You need more than the annual percentage rate (APR) to really get to know your mortgage. While the APR will help you compare the APR of one mortgage with another, it won't come clean on other home loan and financial characteristics you'd better know before you're married to the terms of a mortgage. Getting Mortgage Loans Birmingham AL Home Mortgages Birmingham AL Types of Mortgage Loans Birmingham AL Interest-Only Home Loans Birmingham AL Refinancing Mortgage Loans Birmingham AL Mortgage Loans Birmingham AL A Second Mortgage Vs. A Home Equity Loan Birmingham AL Mortgage Refinance Loans Birmingham AL Internet Mortgage Leads Birmingham AL Related Articles Mortgage Refinance Loans Birmingham AL Refinancing a first and second mortgage requires some extra considerations. Depending on your equity, you may find that combining the two mortgages results in a higher interest rate. You may also find that you have to carry PMI with the refinanced mortgage. Interest-Only Home Loans Birmingham AL Types of Mortgage Loans Birmingham AL Internet Mortgage Leads Birmingham AL Getting Mortgage Loans Birmingham AL Refinancing Mortgage Loans Birmingham AL A Second Mortgage Vs. A Home Equity Loan Birmingham AL Mortgage Loans Birmingham AL Mortgage APRs Birmingham AL Home Mortgages Birmingham AL Save Articles.DirectoryM.net RSS feed Bookmark this on Delicious Bookmark this page   Copyright © BET Information Systems, Inc. All rights reserved.