Conventional and Jumbo Loans
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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 Kentucky banks for these types of loans as well.
In general, Fannie Mae and Freddie Mac's single family, first mortgage loan limit is $333,700 in 2004. 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, 2004.
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2004 Conventional Loan Limits
First mortgages
- One-family loans: $333,700
- Two-family loans: $427,150
- Three-family loans: $516,300
- Four-family loans: $641,650
- Note: Maximum original loan amounts are 50 percent higher for first mortgages on properties in Alaska, Hawaii, Guam and the U.S. Virgin Islands.
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Second Mortgages
- $150,350 (in Alaska, Hawaii, and the US Virgin Islands: $225,525)
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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, adjustable rate and balloon loans, Fannie Mae and Freddie Mac also have loan programs for low to no 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 traditional Kentucky banks. |
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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. 2/28 ARM
This is and Adjustable Rate Mortgage where for the first 2 years the rate is fixed and then goes adjustable for the final 28 years. It is amortized for a total of 30 years. We offer a wide variety of adjustable rate mortgages - call our office today to find out current interest rates.
Term: 30 years Maximum Amount: $333,370
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Unless otherwise indicated, these APR calculations are based on the following: Conforming loans (whose maximum loan amount is below $359,650 for the contiguous states, District of Columbia, and Puerto Rico or below $539,475 for Alaska, Guam, Hawaii and the Virgin Islands) are calculated based on a loan amount of $333,700 with closing costs of $8,162. Jumbo Loans (whose maximum loan amount exceed $359,650 for the contiguous states, District of Columbia, and Puerto Rico or exceed $539,475 for Alaska, Guam, Hawaii and the Virgin Islands) are calculated based on a loan amount of $1,000,000 with closing costs of $22,418. Your actual APR may be different depending upon these factors. |
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