Second Mortgage

What is the right way to get the right Jumbo Loan Financing?

A jumbo mortgage is different than a conforming loan. A jumbo loan amount exceeds that limit set by FNMA. That limit can change every year, but is around $300,000. With a jumbo mortgage, the interest rate is a little higher than other similar mortgage loans that are for smaller amounts. The reason the rate is higher is because the loan has a perceived higher risk by lenders.

A jumbo loan is considered a non-conforming loan. Conforming mortgage loan programs have perceived less risk by lenders and have lower interest rates. Most mortgage loans that are done by lenders are conforming loans. Jumbo loans are a small percentage of the mortgages that are done. Read the rest of this entry »

Here are some pros and cons of getting a Second Mortgage to avoid Jumbo Mortgage Loan Rates.

The Federal National Mortgage Association (FNMA) and the Federal Home Loan Mortgage Corporation (FHLMC), commonly known as Fannie Mae and Freddie Mac, respectively, subsidize the real estate mortgage market by buying mortgage loans originated by banks and other lenders.

However, these government sponsored entities (GSEs) are subject to maximum loan amounts (e.g., $417, 000 for a single-family home). Loans up to these limits are considered conforming loans. “Any loan over that amount is considered either a jumbo or a super-jumbo loan,” explains Steve Litten, president of Home Security Mortgage in Fredericksburg, Virginia. Read the rest of this entry »

You can now get your Jumbo Mortgage Loan online!

Getting approved for a jumbo mortgage loan online is similar to getting approved for a traditional mortgage when you use a mortgage broker. However, you can expect to find lower interest rates online with better terms.

Jumbo mortgage loans offer as many financing options as a conventional mortgage loan. You can pick from a fixed-term loan to an ARM with one to ten years until rates lock in. You can also put zero down, have unverified income and assets, or no ratio test. Read the rest of this entry »

This may sound new type of (second) mortgage to you, but it has been around for  a while now.

Jumbo mortgage loans provide financing to those who need a loan above conventional loan limits. Fannie Mae (FNMA) and Freddie Mac (FHLMC), two large agencies that purchase the bulk of residential mortgages in the United States, establish these limits.

This limit signifies the maximum dollar amount that they will purchase from an individual lender. Those who need a first mortgage above the limit must look beyond the traditional lending market and search for lenders who offer jumbo mortgage loans. Read the rest of this entry »