Types Of Mortgage Loans Phoenix AZ

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 Loan Modifications For Less Loan Modifications For Less Lowers your interest rate and principal balance. (877) 456-2614 3985 N Central Ave Phx Phoenix, AZ LoanModificationsForLess Loan Modifications for Less works with your lender in order to modify your principal balance and interest rate payments. Related Articles Getting Mortgage Loans Phoenix AZ 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 Mortgage Refinance Loans Phoenix AZ Internet Mortgage Leads Phoenix AZ Refinancing Mortgage Loans Phoenix AZ A Second Mortgage Vs. A Home Equity Loan Phoenix AZ Types of Mortgage Loans Phoenix AZ Mortgage Loans Phoenix AZ Home Mortgages Phoenix AZ Mortgage APRs Phoenix AZ Interest-Only Home Loans Phoenix AZ Related Articles Interest-Only Home Loans Phoenix AZ There are many benefits to interest-only mortgage loans and many situations where an interest-only mortgage loan could be best for you. Find out what an interest-only mortgage loan is and if it can help you. Types of Mortgage Loans Phoenix AZ A Second Mortgage Vs. A Home Equity Loan Phoenix AZ Home Mortgages Phoenix AZ Mortgage Loans Phoenix AZ Getting Mortgage Loans Phoenix AZ Mortgage Refinance Loans Phoenix AZ Mortgage APRs Phoenix AZ Refinancing Mortgage Loans Phoenix AZ Internet Mortgage Leads Phoenix AZ Save Articles.DirectoryM.net RSS feed Bookmark this on Delicious Bookmark this page   Copyright © BET Information Systems, Inc. All rights reserved.