Types of Mortgage Loans - The Basics

In the past, homebuyers had more or less limited loanoptions guides. These days, there are more options than you can shake a astick, but here's a primer on basics.Mortgage LoansWith the explosion of the housing market over the past 10 years, was released acall for mortgage loan programs only. Bankershave been more than happy to answer the call. For manyborrowers, traditional mortgage loans still fit the bill. Here'san introduction. 1. Compliant Loans - The loans comply with the requirements setdown by Fannie Mae and Freddie Mac, two government sponsoredentities buy and sell loans from mortgage lenders. Theseentities put caps close on the loans they purchase, withsingle detached houses with a mortgage cap in the range of $ 360.000. With the housing boom, many sectors suchas San Diego did not get closer to the marketplace by conformingloan homes average in the range of $ 600,000. 2. Non-performing loans Conforming - Known as "Jumbo Loans", thesemortgages are written for loans exceeding $ 360,000 capmentioned above. Interestrates They tend to have slightly higher, but are readily available. 3. Bad Credit Loans - In the mortgage industry, brokersoften guides cover a borrower's card. "This paper refers to peoplewith less than stellar credit." B "paper refers to relativelysmall problems, while the" D "paper refers to bigger problems such as filing asbankruptcy. The worst of the paper, the more you pay in interest canexpect points and down payment amounts. Married to carefully determine whether paying these extra penaltiesmakes financial sense. RatesWith interest loans of each of the above, you will have the opportunity to goingwith an interest rate fixed or variable rate. Fixed interestrates simply set an interest rate that will ultimately chargedover the duration of the loan. Regular price usually starts ATA figure less than the rates fixed, but can be moved up to reflectchanges the cost of money borrowed. In many ways, are arebetting if interest rates increase in the future. For a large majority of people, basic mortgage loan optionsstill enough when it comes to borrowing money. Do not worry, If You have problems qualifying for these loans. manyother There are options on the market these days.