Do you need a fixed rate mortgage which offers the predictability of a fixed monthly payment with a choice between a 15 to 30 year loan term?
There are different types of conventional loans that have their own peculiarities. Conforming and nonconforming types of conventional loans are the most common kind of subdivision. Conforming loans have to meet the guidelines set by Fannie Mae and Freddie Mac. One key feature is that the loan amount can not exceed the maximum loan limit set by Fannie and Freddie.
- The fact that the creditors can actually keep the loan in their own portfolios and in this way they provide themselves with more flexibility concerning the loans as it must not take any other direction when it comes to some other borrowers.
- The creditors are free to add or on the contrary eliminate some of the fees on the loans.
- In the case when a person who is willing to get a loan does not have all the possibilities to do that, the creditor has the opportunity to self-insure the loan at the same time increasing the interest rate so that to recompense for the risk he or she takes.
- Able to finance a home that is over the maximum loan amount established by Fannie Mae and Freddie Mac.
- Enables a borrower to purchase “more house”.