Types of Mortgage Loans - The Basics

In the past, homebuyers more or less had limited mortgage options. These days, there are more options than you can shake a stick, but here's a primer on basics.Mortgage LoansWith the explosion of the housing market over the past 10 years, a call went out for mortgage loan programs only. Bankers have been more than happy to answer the call. For many borrowers, conventional loans still fit the bill. Here's Introduction.1. Compliant Loans - The loans comply with the requirements of Fannie Mae and Freddie Mac, two government sponsored entities that buy and sell loans from mortgage lenders. These entities put strict caps on loans to buy, with single-family homes with a mortgage cap in the range of $ 360.000. With the housing boom, many areas such as San Diego did not move closer to the marketplace of the loan as complying range.2 homes average over $ 600,000. Non-performing loans Conforming - Known as "Jumbo Loans", these loans were written for loans that exceed the $ 360,000 cap mentioned previously. They tend to have slightly higher interest rates, but are easily available.3. "Bad Credit Loans - In the mortgage industry, mortgage brokers often refer to a borrower's card." This document refers to people with less than stellar credit. "B" paper refers to relatively small problems, while "D" paper refers to bigger problems such as filing for bankruptcy. The worst of the card, the more we can expect to pay the interest, points and down payment amounts. You must carefully determine whether paying these extra penalties makes financial sense.Interest loans RatesWith each of the above, you can go with a fixed interest rate or a variable rate. Fixed interest rates simply set a definitive interest rate being charged on the entire length of the loan. Regular price usually starts with a figure lower than fixed rates, but can be moved up to reflect changes in the cost of borrowed money. In many ways, you are betting whether interest rates will increase the future.For a large majority of people, basic mortgage loan options still suffice when it comes to borrowing money. Do not worry if you have problems qualifying for these loans. There are many other options on the market these days.Sergio Haros is with Great Western Mortgage - San Diego mortgage brokers - to provide home loans in San Diego. Great Western Mortgage is a subsidiary of San Diego for writing mortgages mortgages San Diego and San Diego refinance and home equity loan.