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Conventional
Loans (Fixed Rate)
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The
most common fixed rate is a 30-year mortagage followed
by a 15-year fixed rate. Fixed rates are also available
for 10 and 20 year mortgages. The rate remains fixed
over the life of the mortgage.
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Conforming
loans can include fixed rates, ARM's or balloons.
- Jumbo loans can include fixed
rates, ARM's or interest only.
- Conventional loans can apply to
purchases or refinances.
- Jumbo loans would include those
loans that are over $359,650 (with the exeption of AK
and HI). You may want to combine two loans together
to avoid a jumbo loan. An example would include:
80/20, 80/10/10, 80/15/5.
- An 80/20 would
be two loans. One loan for 80% and one loan for
20%.
- Arm loans are fixed for a determined
period of time. Some of the arms include: 1
year, 3/1, 5/1, 7/1, 10/1. A 3/1 would be fixed
for 3 years and adjust once a year after the fixed period
has exxpired. These loans generally have a cap
over the life of the loan.
- Balloon: The payments are
generally amortorized over a 30 year period, however,
these loans come due after the balloon period has expired.
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