Types Of Mortgage Loans San Jose CA

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 NoJa Mortgage Corp. 408-841-9400 2059 Camden Ave 231 San Jose, CA Related Articles Internet Mortgage Leads San Jose CA If you are a loan officer, you may be considering purchasing Internet mortgage leads. In this article, you’ll learn about the different Internet mortgage lead companies. Home Mortgages San Jose CA Getting Mortgage Loans San Jose CA Refinancing Mortgage Loans San Jose CA Types of Mortgage Loans San Jose CA A Second Mortgage Vs. A Home Equity Loan San Jose CA Interest-Only Home Loans San Jose CA Mortgage Loans San Jose CA Mortgage APRs San Jose CA Mortgage Refinance Loans San Jose CA Related Articles Types of Mortgage Loans San Jose CA Looking for home mortgage loans can get confusing with the variety of mortgage loan programs available today. Most of these programs are just variations of fixed rate and adjustable rate mortgage loans and can be structured to fit your needs. Mortgage APRs San Jose CA Interest-Only Home Loans San Jose CA Internet Mortgage Leads San Jose CA Mortgage Refinance Loans San Jose CA Refinancing Mortgage Loans San Jose CA Getting Mortgage Loans San Jose CA A Second Mortgage Vs. A Home Equity Loan San Jose CA Home Mortgages San Jose CA Mortgage Loans San Jose CA Save Articles.DirectoryM.net RSS feed Bookmark this on Delicious Bookmark this page   Copyright © BET Information Systems, Inc. All rights reserved.