The Federal Home Loan Mortgage Corporation and The Federal National Mortgage Association have limited a certain amount of mortgage loan for the people.
These loans are divided into parts, The loan amount up to $417, 000 is considered as the conforming loans whereas those above this range are considered as jumbo loans.
The conforming loans are meant for the single family, The amount for the jumbo loans lies between $417,001 and $650,000 whereas those loan amounts which are above $650,000 are considered as the super jumbo loans.
Every loan includes it pros and cons. The important thing is that whenever you opt to apply for any home mortgage loan use free online mortgage calculator which would help you in knowing about the payments you have to pay monthly. By this one would be able to manage payments which would be within their budget.
The jumbo mortgage loans come with some benefits as it ends up quickly, no need for taken any private mortgage insurance etc, no fees to be payable to the lenders. There are some disadvantages of the jumbo loans as the jumbo loans are provided with high interest rates. Due to this, payments are also increased which results in difficulty for residents to make their payments on time. Moreover it also affects your budget significantly.
It is also a lot harder to qualify for the jumbo loans. There are many formalities to be fulfilled as well as the additional lenders risk. Therefore to avoid any critical issue one needs to use the free online mortgage calculator. This makes them to know whether they are able to do payments on time without any difficulty.
If you are not agreeing with the jumbo mortgage loans and looking for some other viable option then another option available is the second mortgage loan. The significant advantage of this loan is that one would be accompanied with low interest rates as compare to the jumbo mortgage loan interest rate which depends upon the FICO score and by qualifying for some other important requirements. To find out whether the interest rates of the second mortgage loan is affordable or not use an effective tool that is available online. This beneficial tool is known as free online mortgage calculator.
The free online mortgage calculator is an important tool that is used to help the borrowers to find about their monthly payments. Whenever you apply for mortgage loan, first use mortgage calculator to find out whether you would be able to do monthly payment on time. It helps in maintaining the budget such that by finding out the monthly payment amount one would be sure of how much could they borrow so that it could not be hard for their budget and the payments would be done on time without facing any difficulty. The second mortgage loan also offers some other benefits as one could easily qualify for this loan. This loan depends upon the same lender and their closing is also fixed so the cost for it is also very less as compare to jumbo loans.
Posted by Guest Author Maria Smith