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Conforming Loans Products
Conforming loans have guidelines that follow the terns established by Fannie Mae and Freddie Mac, their decisions go based on national data and compensating factors that makes this programs flexible, affordable and available for those looking to fall into PRIME product. These two secondary market corporations purchase mortgages complying with these guidelines from mortgage lenders, and bundle the mortgages into securities and sell these securities to investors.
2009 Single-Family Mortgage Loan Limits
The Housing and Economic Recovery Act of 2008 changed Fannie Mae's charter to expand the definition of a "conforming" loan. Effective with the November 2008 release of the conforming loan limits, two sets of limits are provided for first mortgages -- general conforming loan limits, and high-cost area conforming loan limits.
The conforming loan limits apply to all conventional mortgages that are delivered to Fannie Mae on or after January 1, 2009. Please note that the 2009 general conforming loan limits are identical to the 2006, 2007, and 2008 conforming loan limits. The high-cost areas are determined by the Federal Housing Finance Agency. The company may purchase loans up to $625,500 in designated high-cost areas
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Maximum Original Principal Balance |
Units |
Contiguous States, District of Columbia, and Puerto Rico |
Alaska, Guam, Hawaii, and the U.S. Virgin Islands |
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General |
High-Cost* |
General |
High-Cost* |
1 |
$417,000 |
$625,500 |
$625,500 |
$938,250 |
2 |
$533,850 |
$800,775 |
$800,775 |
$1,201,150 |
3 |
$645,300 |
$967,950 |
$967,950 |
$1,451,925 |
4 |
$801,950 |
$1,202,925 |
$1,202,925 |
$1,804,375 |
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Fixed Rate Mortgages
With fixed rate mortgage the interest rate and monthly payments remain fixed for the term of the loan. Fixed rate loans are available for 40, 30, 25, 20, 15 years and 10 years. Normally, the shorter the length of a mortgage, the lower the interest rate.
The most popular mortgage terms are 30 and 15 years. With the traditional 30 year fixed rate loan, your monthly payments are lower than they would be on a shorter term mortgage.
Adjustable Rate Mortgages
Variable or adjustable loan is loan whose interest rate, and accordingly monthly payments, fluctuates over the period of the loan. With this type of mortgage, periodic adjustments based on changes in a defined index are made to the interest rate. The index for your particular loan is established at the time of application.
Well known ARM indexes include:
- Constant Maturity Treasury (CMT)
- Treasury Bill (T-Bill)
- 12-Month Treasury Average (MTA or MAT)
- Certificate of Deposit Index (CODI)
- 11th District Cost of Funds Index (COFI)
- Cost of Savings Index (COSI)
- London Inter Bank Offering Rates (LIBOR)
- Bank Prime Loan (Prime Rate)
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AMC
Financial Corporation operates as a DBA of Equitable Trust Mortgage.
Equitable Trust Mortgage is Equal Housing Lender. © 2007 AMC
Financial Corporation DBA AMC Financial Corp a VA corporation. Trade/service
marks are the property of AMC Financial Corporation and Equitable
Trust Mortgage and/or its subsidiaries. All rights reserved. AMC
Financial offers these products through our affiliates as a
correspondent lender. Equitable Trust Mortgage Corporation Licensed
by the Pennsylvania Dept of Banking and with license to do business
in the state of VA, MD and DC