|
Based on the actual amount of the loan mortgage loans can be divided into two types; one is conforming mortgage loans and the other is jumbo mortgage loans.
Confirming mortgage loans A conforming mortgage loan falls in par or within the limits set by the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac). Generally conforming mortgage loans generally carry a lower interest rate (mostly below 20% if the actual loan amount) and have a longer duration of payment.
Jumbo Mortgage Loans If the amount of the loan exceeds the mortgage loan limits set by the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac) then it is called a Jumbo Mortgage Loan. Jumbo mortgage loans are also called non conforming loans and generally carry a higher interest as they pose a higher risk to the lender. The interest rate in a jumbo mortgage loan is about 25% of the down-payment and has at least ½ percent more interest than other conforming loans. Some lenders who specialize in jumbo loans can be found at mortgage-lenders-plus.com, nva-mortgage.com, lendingleaders.com and jumbo-mortgage-refinance-loans.com. These sites also offer current jumbo mortgage rates online.
|
