Mortgage plans are divided into different types. One of the general categories is termed as conventional loans. It can then be classified into the subcategories of conforming and non-conforming loans. Conforming loans are a residential mortgage loan that corresponds to the set of guidelines implemented by The Office of Federal Housing Enterprise Oversight (OFHEO). It is a mortgage that is equal to or less than the dollar amount dictated by the conforming loan limit decided upon by Fannie Mae (FNMA) and Freddie Mac (FHLMC).
In general, adjustable-rate mortgages can offer lower interest rates and mortgage payments at first because the borrower assumes the risk of changes in interest rates. Usually borrowers choose ARMs because the lower initial payment makes the home more affordable at first, but the borrower must be willing to accept the risk of an increased mortgage payment, which can sometimes be significantly higher.
After a specified period of time, the interest rate and payments on an ARM are adjusted based on changes to a specific interest rate index (such as the U.S. treasury bill rate). These adjustments occur at times specified in the ARM disclosure you receive from the lender and can result in payment increases. There is always a floor cap, payment cap, and life cap on the rate. It’s important to understand all the aspects of ARMs before you make your decision.
We specialize in loans greater than $417,000, otherwise known as JUMBO loans. Jumbo loans range from $417,000 to $1.2 million. Loan amounts greater than $1.2M are considered "Super Jumbo" loans.
Many of our loans have interest-only payments for flexibility, or allow for zero or low-down payments. Our goal is to help you start thinking about building your net worth.