This is the typical 10% down loan with PMI (mortgage insurance) offered by Countrywide, Wells Fargo, Washington Mutual, etc. As a Mortgage Broker, I try to avoid PMI when possible. To do so we can do a 80/10 or even an 80/20 to avoid PMI. 100% loans or an 80/20 mortgages have higher rates than 5% down loans.
If you’d like to get pre-qualified or if you have other mortgage questions, please email jon@mylendingplace.com. Or if you just want to review your credit report before you buy. 512.996.8194 | Cell is 512.577.2958
Excerpt: “Paulson in the CNBC interview also called on Congress to quickly pass pending legislation that would reform the Federal Housing Administration, which he said would help 250,000 at-risk homeowners who have adjustable rate subprime mortgages refinance to more affordable loans and another piece of legislation that would expand the availability of so-called “jumbo” mortgages, loans higher than $417,000.
The two giant government-sponsored mortgage companies, Fannie Mae and Freddie Mac, cannot presently back these jumbo loans, which restricts their availability.
Any single mortgage over 417,000 is considered “jumbo”, which isn’t really an issue in Texas where the median price is around 130-160K. However, on both coasts these sub-prime ARMs are often over 417K. Therefore, they can’t be sold to Fannie Mae/Freddie Mac. One solution to the sub-prime mess is to raise the conforming loan limit to 600K, so these adjusting ARMs can be backed by Fannie Mae without being classified as “jumbo.”
Today’s Mortgage Rates: Jan. 30, 2009
