When it comes to buying a home, understanding your mortgage options can feel like learning a new language. Let's break down the essentials of "conventional" and "non-conforming" loans and see how they fit into your home-buying plan.
Imagine you're shopping for a mortgage not backed by the government. That's a conventional loan for you. These loans stick to rules set by Fannie Mae and Freddie Mac, two big names in the mortgage world. Most home loans out there are conventional and pretty straightforward to get.
Now, within conventional loans, you've got "conforming" and "non-conforming" types. A conforming loan is governed by Fannie Mae and Freddie Mac’s rules, especially regarding how much you can borrow. For 2024, you can borrow up to $766,550 in most places but more in pricey areas.
- Better Interest Rates: These loans are the go-to for most because they usually come with lower interest rates, meaning cheaper monthly payments.
- Choice of Terms: You can pick from various payment plans whether you want a predictable fixed rate or a flexible adjustable rate.
Step into the world of non-conforming loans, which is just a fancy way of saying any loan that doesn't fit Fannie Mae or Freddie Mac’s criteria. These are typically your "jumbo" loans, which go beyond the borrowing limits of conforming loans and are perfect for buying high-priced homes.
- Higher Loan Amounts: They let you borrow more than the usual limits, which is essential in expensive neighborhoods.
- Tougher to Qualify: You'll need a stellar credit score and solid finances to get one of these.
- Higher Rates: With bigger loans come bigger risks, so expect higher interest rates.
- Big Purchases Possible: Ideal if you’re eyeing a luxury home or a big investment that a regular loan won't cover.
- Customized Options: These loans are tailor-made for high earners who need a bit more from their mortgage.
Choosing between these loans boils down to a few key things:
- How Much You Need: If your dream home costs more than the usual loan limits, you might need a non-conforming loan.
- Your Financial Health: Good credit and strong finances? A non-conforming loan could be in reach.
- Where You're Buying: High-cost area? Non-conforming loans can make those big-ticket purchases happen.
The better you understand these options, the easier it will be to pick the right one for your situation. Whether you go with a conventional conforming loan or step up to a non-conforming loan, getting a clear picture of each will help you navigate the path to your new home. Need help understanding which option works best for your property-buying goals? Contact us for personalized help.
We've been helping customers afford the home of their dreams for many years and we love what we do.
Company NMLS: 1614643
For licensing Informmation go to:
www.nmlsconsumeraccess.org
State of Illinois, Division of Banking
Illinois Department of Financial and Professional Regulation (IDFPR)
555 West Monroe Street, 5th Floor
Chicago, IL 60661
Telephone Number: 1-888-473-4858
6515 Stanley Ave. Suite 2
BERWYN, Illinois 60402
Phone: (773) 720-4971
mauricio_echavarri@outlook.com
The Department of Financial and Professional Regulation (Department) evaluates our performance in meeting the financial services needs of this communnity, including the needs of low-income to moderate-income households. The Department takes this evaluation into account when deciding on certain applications submitted by us for approval by the Department. Your involvement is encourage. You may obtain a copy of our evaluation once the Department completes our first evaluation. You may also submit a signed, written comments about our performance in meeting community financial services needs to the Department. We will update this notice when our first evaluation has been issue.
Powered By LenderHomePage.com
Midwest Mortgage Professionals Inc strives to ensure that its services are accessible to people with disabilities. Midwest Mortgage Professionals Inc has invested a significant amount of resources to help ensure that its website is made easier to use and more accessible for people with disabilities, with the strong belief that every person has the right to live with dignity, equality, comfort and independence.
Midwest Mortgage Professionals Inc makes available the UserWay Website Accessibility Widget that is powered by a dedicated accessibility server. The software allows mwmtgpro.com to improve its compliance with the Web Content Accessibility Guidelines (WCAG 2.1).
Midwest Mortgage Professionals Inc accessibility menu can be enabled by clicking the accessibility menu icon that appears on the corner on the page. After triggering the accessibility menu, please wait a moment for the accessibility menu to load in its entirety.
Midwest Mortgage Professionals Inc continues its efforts to constantly improve the accessibility of its site and services in the belief that it is our collective moral obligation to allow seamless, accessible and unhindered use also for those of us with disabilities.
Despite our efforts to make all pages and content on Midwest Mortgage Professionals Inc website fully accessible, some content may not have yet been fully adapted to the strictest accessibility standards. This may be a result of not having found or identified the most appropriate technological solution.
If you are experiencing difficulty with any content on Midwest Mortgage Professionals Inc website or require assistance with any part of our site, please contact us during normal business hours as detailed below and we will be happy to assist.
If you wish to report an accessibility issue, have any questions or need assistance, please contact us by sending an email to: mauricio_echavarri@outlook.com