Conforming Fixed Rate loans are the most popular types of loans used. Most of the loans that I arrange as a Mortgage Broker in Catonsville are converntional conforming fixed rate loan. They offer the best possible rates and very attractive terms.
CONFORMING RULES OF THUMB:
- Usually higher Down Payments
- Lower Interest Rates
- Buyers with Good Credit
- Usually Mortgage Insurance is required with less than 20 % Down
Fixed Rate Mortgages are just what they say they are. They have a fixed interest rate over the entire life of the loan term. The term of the loan refers to the pay back period.
In other words if you get a 30 year mortgage at 5%, the rate will never go up. That means the principal and interest portion of your loan will never go up during the entire 30 year periodof the loan. Even if the financial world goes to hell in a hand-basket, your payment will remain the same. However, if the interest Rates go down, there is NO PAYMENT PENALTY to refinance your loan to a lower interest rate.
A Rate & Term refinance involves paying off your current mortgage with a new mortgage. If the rate is lower your payment will go down. Also you can select the term of the loan. So if you’re in a 30 year mortgage and five years into it you refinance to a much lower rate you will have the choice to go back to a 30 year mortgage and that will dramatically reduce your monthly payment or you can elect to structure the new loan at a lower term. This new term can be anywhere from 7 to 30 years. So this gives you a lot of flexibility to create a great future.
You could go back to a 30 year mortgage at a lower rate with dramatically reduced payments and live on easy street for the next 30 years or keep your payment the same and dramatically reduce the number of years that you will have to pay your loan back. Then live the rest of your life debt-free. The choice is yours!
- The Shorter the Loan Term, the lower the Interest Rate.
- 30 year fixed conventional loan is for 360 months
- 20 year fixed conventional loan is for 240 months
- 15 year fixed conventional loan is for 180 months
- Any Year Mortgage Term available
The Golden Rule Applies:
- Those with the GOLD Make ALL the Rules
- All Rules are subject to change!
- 5% down payment required is typical
- 3% down payment: Special Program
- Minimum credit score - usually 620
- Post- bankruptcy: can qualify after 4 years
- Post-foreclosure: can qualify after 7 years
- Post-short-sale: Can Qualify after 2 years (LTV restrictions may apply)
ADRIAN CITRONI - MORTGAGE BROKER
Primary Service Area: Catonsville & Vicinity
Academy Heights, Arbutus - Halethorpe, Catonsville, College Hills, Elkridge, Ellicott City, Oella, Westchester
Licensed Loan Originator NMLS# 144522; MD - DC - PA - DE - VA - FL - CA
CALL OR TEXT: 410-916-0776