Types Of Mortgage Loans Columbus OH

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 First Horizon Home Loans 614-223-1204 85 E Gay St Columbus, OH Related Articles Getting Mortgage Loans Columbus OH Before you find the home of your dreams, you should consider getting pre-approved for a mortgage loan. To learn more information about acquiring a mortgage loan, read the following article Refinancing Mortgage Loans Columbus OH Interest-Only Home Loans Columbus OH Mortgage Loans Columbus OH Home Mortgages Columbus OH A Second Mortgage Vs. A Home Equity Loan Columbus OH Internet Mortgage Leads Columbus OH Types of Mortgage Loans Columbus OH Mortgage Refinance Loans Columbus OH Mortgage APRs Columbus OH Related Local Event We All Fall Down: The American Mortgage Crisis Dates: 10/27/2009 - 10/27/2009 Location: Drexel East Bexley, OH View Details Times:Tue. 07:30 p.m. - 09:00 p.m. Email:Columbus-events@ohioevenfinder.com Phone:614-444-7460 Address: 2254 E Main St Bexley, OH Description: Written and Produced by Kevin Stocklin, Directed by Gary Gasgarth Filmed over a twelve-month period, from Rochester, NY and Cleveland, to Seattle, Los Angeles and San Diego, WE ALL FALL DOWN also shows how an out-of-control "mortgage machine" has today led to home foreclosures nationwide, featuring interviews with families who have been devastated, as loan defaults and evictions spread from the poor to middle-class sectors of the populace, in turn creating millions of abandoned and disintegrating properties in neighborhoods and cities throughout the U.S. Their emotionally moving stories reveal the all-too-real personal consequences for Americans caught up in this financial spiral. This screening is co-sponsored by the Free Press. Admission is free, donations accepted.   Related Articles Home Mortgages Columbus OH Home buying is one of the most important decisions an individual or a couple can make. It is quite possibly the largest purchase an individual or family will ever make, thus, it is important to approach the funding of the purchase with great caution. Refinancing Mortgage Loans Columbus OH Mortgage Loans Columbus OH Getting Mortgage Loans Columbus OH Mortgage APRs Columbus OH Mortgage Refinance Loans Columbus OH Types of Mortgage Loans Columbus OH Interest-Only Home Loans Columbus OH A Second Mortgage Vs. A Home Equity Loan Columbus OH Internet Mortgage Leads Columbus OH Save Articles.DirectoryM.net RSS feed Bookmark this on Delicious Bookmark this page   Copyright © BET Information Systems, Inc. All rights reserved.