Okay, the main difference between a conforming and a jumbo loan is simply the loan amount. Conforming loans are labeled conforming because they conform to guidelines set by Fannie Mae or Freddie Mac. For most parts of the country the maximum loan amount to still be considered a conforming loan is $484,350. Anything beyond that […]
When Can You Cancel Private Mortgage Insurance
It used to be that when someone applied for a conventional loan, the down payment required could be as much as 20 or even 30 percent or more. That kept many buyers away from home ownership simply because they couldn’t save up enough for a down payment. In the late 1950’s however an insurance company […]
What Is Mortgage Insurance?
If you’re doing some research on mortgage loans and searching for information such as down payments, closing costs and interest rates, at some point you’ll run across the term “mortgage insurance.” Mortgage insurance, sometimes referred to as Private Mortgage Insurance, or PMI, is in fact an insurance policy but it might not be what you […]
Refinancing Multiple Mortgages Into One
It’s fairly common for homeowners to have not one but two or more mortgages filed against the property. For some, they actually took out two loans at the time of purchase, a first and a second mortgage. When we structure such a loan for buyers, it’s to avoid paying private mortgage insurance, or PMI, each […]
