what are some different types of mortgages?
with everything changing in the mortgage industry what are some types of mortgages and how do they work.
Tags: Different, Mortgages, Some, Typeswith everything changing in the mortgage industry what are some types of mortgages and how do they work.
Tags: Different, Mortgages, Some, Types
You mainly have conventional at 15yr or 30yr. Then you have ARMs which are amatorized for 30 years but have an adjusting interest rate after a few years. Go with the fixed-rate conventional mortgage.
All you need to know is three words; Thirty Year Fixed! All of the other programs have little to no benefit as far as interest rate, unless you have a very unique situation.
There are essentially 2 types of mortgages that are getting done today.
They are all CONFORMING loans.
Conforming means they conform to Fannie Mae and Freddie Mac guidelines.
80% loan 20% down
90% loan 10% down
FHA 5 % down
NON CONFORMING are loans that are over $417, 000.
They are hard to get because the investors that bought these loans have quietly exited the building.
The mortgage companies are reluctant to do non conforming loans because Freddie Mac and Fannie Mae are forbiden to buy the paper.
They are limited to loan $417,000 or below.
P.S. The interest only no money down loans are not happening today. Why? Investors won’t buy them from the mortgage companies, therefore the mortgage companies won’t make those loans.
Hope this helps
Terry
http://www.Welcome2Arizona.com