The size of mortgage is decided by Freddie Mac and Fannie Mae in the US as they are the big realtors, according to the current economy any mortgage higher than 417000 dollars fall under the category of jumbo mortgage. Anybody going for a jumbo mortgage has to pay jumbo interest rate as according to lender these are high risk investments. But there are ways you can get reasonable interest rates by taking two mortgages the lender finances first mortgage by 80% and finances the second completely. Also you have no doc loans available on jumbo mortgages, these loans can be at a fixed or variable interest. When looking for a jumbo mortgage loans look online and offline to get the best interest rates, also compare the interest rate so you get the best deals. You can also go to a broker to get a loan for your jumbo mortgage. Make sure to look into the companies’ background when looking for jumbo mortgage if you don’t know much about the company.
You can get a mortgage even if you have a bad credit
Today most of us don’t have a perfect credit score that does not mean we cannot apply for a home loan. Today there are companies that specialize in bad credit mortgage, but there are a few things you should keep in mind. The interest should not be very high, you should read all terms and conditions properly. Also be vary of frauds as you could end up losing your money and wasting time. Look around the market online and offline to find the company that offers the best interest rate irrespective of your bad credit. Taking a bad credit mortgage also helps you in improving your credit score, when you make timely payments it is automatically reflected on your credit score.
When you sell your house what will become of your mortgage?
When you buy a house there is a mortgage involved as none of us have a large amount to buy a house from our savings. The question is what happens to this mortgage when you sell the house, over a period of time the money you owe the bank must have decreased but not complete so you have to pay the part of money you make to the bank for paying back the entire loan. But if you do so in the first 2 years of buying the house the money you will get is less, you will not only have to pay the loan amount but also penalties applied by the bank. So make sure to calculate the profit you will be making when selling the house, for example the rate of your house is 120000 dollar and you owe the bank 100000 dollar so your profit will be very less, so it is best to wait until your equity on the house increases and you get a good profit when you sell the house.