Mortgage Rates Find the Lowest Refinance and Home

Conforming Loans

A conforming loan is a home mortgage loan that matches the dollar values established by the OFHEO, the Office of Federal Housing Enterprise Oversight, using the average housing prices on an annual October to October percentage change. These loans must meet the lending criteria of Freddie Mac and Fannie Mae.

Jumbo Loans

Jumbo loans, also known as non-conforming loans, are loans that exceed the maximum loan amount established by the Federal National Mortgage Association (Fannie Mae and Freddie Mac). They often have higher interest rates than conforming loans, but the difference may vary depending on the economy.

Second Mortgage

A second mortgage is a loan taken after the first mortgage and is secured against the same assets as the first, the value of the property and home. Based on the amount of equity, interest or ownership for a property; the loan amount is the difference between the current value of a property and the amount that is owed on it.

Second Mortgages are a great way for homeowners to use their homes as collateral and borrow the money they need. These loans were once very restricted and viewed as proof of financial woes. This is no longer the case and there is a wide selection of loans available to fit your specific needs.

Common Reasons for a Second Mortgage:

• Home Improvement Financing
• Tuition Fees
• Debt Consolidation
• Emergencies

Second mortgages normally carry a higher interest rate than a first mortgage. If interest rates are low, then refinancing may be the better option. Still, despite higher interest rates, second mortgages may save money in the long run compared to refinancing because of low transaction costs.

Types of Second Mortgages:

• Traditional Mortgage
• Home Equity Loan
• Home Equity Line of Credit