Conventional and Jumbo Loans
Conventional loans are secured by government sponsored entities or GSEs such as Fannie Mae and Freddie Mac. Conventional loans can be made to purchase or refinance homes with first and second mortgages on single family to four family homes. First Rate Mortgage is able to offer more flexibility and lower rates than local banks for these types of loans as well.
In general, Fannie Mae and Freddie Mac’s single family, first mortgage loan limit is $424,000 in 2017. This limit is reviewed annually and, if needed, changed to reflect changes in the national average price for single family homes. The current loan limit applies to all conventional mortgages delivered after January 1, 2017.
- One-family loans: $424,000
- Two-family loans: $543,000
- Three-family loans: $656,350
- Four-family loans: $815,650
- Note: Maximum original loan amounts are 50 percent higher for first mortgages on properties in Alaska, Hawaii, Guam and the U.S. Virgin Islands.
High Cost Areas
- Some properties may be included in a High-Cost areas and these areas have a different Maximum Loan Limit.
- One-family loans: $636,150
- Two-family loans: $814,500
- Three-family loans: $984,525
- Four-family loans: $1,223,475
- To see if your property is in a High-Cost area, visit www.FannieMae.com.
Loans which are larger than the limits set by Fannie Mae and Freddie Mac are called jumbo loans. Because jumbo loans are not funded by these government sponsored entities, they usually carry a higher interest rate and some additional underwriting requirements. A strategy to lower your overall interest payments if your purchase or refinance balance is above $333,700 is to use a combination of both first and second trust money, referred to as an 80/10/10, 80/15/5 or 80/20. Every situation is different, but it is one more option to consider.
In addition to common loan structures such as fixed rate and adjustable rate loans, Fannie Mae and Freddie Mac also have loan programs for low down payments, community lending and affordable housing initiatives, construction to permanent, home improvement and reverse mortgages. For all these loan programs First Rate Mortgage offers many more advantages than a traditional bank.
30 Year Fixed Rate Loan
This loan’s interest rate does not change for the life of the loan which is 30 years or 360 months.
Term: 30 years Maximum Amount: $333,370
We offer a variety of 30 year products with very competitive rates. Call our office today to find out what the current interest rates are.