An interest-only mortgage is a type of home loan that offers a distinct, and often alluring, payment structure. For a set period, typically the first ...
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The world of home financing can be complex, and among its various products, the interest-only mortgage often stands out as one of the most misundersto...
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An interest-only mortgage is a type of home loan that allows the borrower to pay solely the interest charged on the principal balance for a set initia...
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If you have an interest-only mortgage, you’re likely familiar with the monthly routine: your payments cover just the interest on the loan, leaving t...
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An interest-only mortgage is a home loan that works differently from the standard mortgage most people know. With a regular mortgage, your monthly pay...
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An interest-only mortgage sounds like a dream come true. You borrow a large amount of money to buy a home, and for the first few years you only have t...
Read MoreUnderstanding the incentive structure helps you be a more informed consumer. It clarifies that your loan officer’s goal is to get your loan closed, which generally aligns with your goal. It also helps you understand that they are not rate-based salespeople and can build trust in the advice they provide.
Beyond Jumbo loans, the non-conforming category includes several other specialized products:
Government-Backed Loans: FHA, VA, and USDA loans are non-conforming because they don’t follow Fannie/Freddie guidelines and are instead insured by federal agencies.
Subprime Loans: For borrowers with poor credit histories.
Bank Statement Loans: For self-employed borrowers who use bank statements instead of tax returns to qualify.
Portfolio Loans: Loans a lender funds and keeps in its own portfolio, allowing for more flexible, custom terms.
A Home Equity Loan is generally the better choice for a large, one-time expense with a known cost, such as a roof replacement, debt consolidation, or a major home renovation. You receive the entire amount upfront and lock in a predictable monthly payment.
Historically, jumbo loan rates were higher than conventional conforming rates, but this is not always the case today. Often, jumbo loan interest rates are very competitive and can sometimes be lower than conforming rates, depending on the lender, the borrower’s financial strength, and market conditions.
Yes. Several programs are designed for low down payments:
FHA Loans: Require as little as 3.5% down.
Conventional 97 Loans: Require 3% down.
VA Loans: For eligible veterans and service members, offer 0% down.
USDA Loans: For homes in eligible rural areas, offer 0% down.
