Fixed 30 yrs? jumbo vs conform?
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i talked with a chase mortgage officer and they told me the maximum i can borrow is $417k for a 1 famly house in nyc for a 30 yrs fixed conform loan. the conform rate is 6.25%. the 2nd option is take out the maximum for conform loan and then take our an 2nd mortgage which has about 12% rate. the last option is a jumbo 30 yrs. fixed rate which has 6.75.%
wow i didnt know all about this. i just though 30 yrs fixed is 30 yrs fixed. but now there is conform, 2nd mortgage, jumbo etc. if i go to another mortgage broker like countrywide, would they tell me this also? thx in advance.
Fixed 30 yrs? jumbo vs conform?Yes, any loan above 417k is considered a jumbo loan. Anything below that (no matter who the lender is) is a "conforming loan".
Since you do not state how much of a loan you are looking to take out, I assume it to be over 417K.
It might be best to take out the "jumbo" loan, but run the figures each way and see what gives you the lowest payment with the best options.
Fixed 30 yrs? jumbo vs conform?Conforming means the loan conforms to a lot of guidelines. The house is at least a certain quality, the borrower has certain qualities, the loan is not larger than a certain amount.
This allows the lenders to package hundreds of loans into a bundle and sell them to investors. The investors know they are getting a certain quality of risk in the package. There are a huge number of investors that will buy conforming loan packages. There are fewer investors that will buy non-conforming packages and those investors have to spend a lot of time checking out the individual loans within the package- that makes the costs higher and so your rate would naturally be higher.
This would be true with any company you talk with but the rates may be slightly different.
Fixed 30 yrs? jumbo vs conform?countrywide isnt a mortgage broker. they're a bank/lender.
brokers work with more than 1 lender...to help you find a good rate/program. some of them may work with over 400 lenders.
Chase and Countrywide...can only offer you THEIR products and their rates. a broker can shop the loan for you.
I would go for an ARM if your loan is a Jumbo loan. the 5/1 ARM rate is about 6.25-6.375% and it's fixed for 5yrs.
You'll have 5yrs to move or refinance. Rates should drop in 1-2yrs from now.
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