Features of Fixed-Rate Loans Include:
- Predictable fixed payments
- Easy to amortize payments
- Protection against rising interest rates
Fixed Rate Loans are Recommended for:
- Homebuyers who prefer regular, fixed payments
- Homebuyers with fixed income
- Homebuyers who plan to stay in their home for many years
Features of Adjustable-Rate Loans Include:
- Early term low monthly payments
- Lower start payments can allow larger loans
- A variety of initial fixed rate options
Adjustable-Rate Loans are Recommended for:
- Homebuyers who want to save money in the short run
- Homebuyers who want to move in a few years
- Homebuyers who desire a lower loan payment
Jumbo Loans
Another type of Conventional Home Loan is the Jumbo Loan. A loan is considered “jumbo” if it exceeds the conforming limit of $425,000 in most areas of California, but can be higher in more expensive counties. Jumbo loans are also available as fixed-rate or adjustable-rate loans.
- Mortgage amounts in excess of the conforming limit of $425,000 for a one-unit property
- Fixed or Adjustable Options
Jumbo Loans are Recommended for:
- Homebuyers who need financing in larger loan amounts
- Investment-minded buyers who can afford a large purchase, but want to leverage assets more effectively
Additional resources and information on conventional loans:
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