New Loan Options To Look Out For

Loan Options Explained

As the economy continues to improve, so does the housing market. With more people looking to buy home, loan guidelines are becoming more flexible, making this dream a reality. If you are looking to buy a new home, or refinance your current house, there are many recent new loan options that could affect you, including:

  • 97 percent conforming loans for first time buyers – Freddie Mac and Fannie Mae have introduced a 3 percent down payment program to help people buy their first home. These loans require buyers to invest in mortgage insurance, and have a cap of $417,000. However, with a 3 percent down payment, this can mean buying a house with a price tag up to $429,897.
  • 90 percent jumbo loan without mortgage insurance – many jumbo loan lenders are allowing high earning homebuyers to get approved for a loan up to 90 percent of a home’s value, with loan amounts starting at $1 million and capping out at $1.25 million. This means being able to invest in a home within the price range of $1,111,111 to $1,388,888.
  • Cash recoup after a cash purchase – many buyers have been choosing to pay for a house in cash, and refinance later. These refinances are typically known as cash out loans, which have higher rates and low loan to cash value ratios. However, cash recoup loans have recently started to become more mainstream, which allows them to be given the same favorable loan amount flexibility and rates as a purchase loan.
  • Re-amortizing jumbo loans – many banks that do not sell their loans are starting to offer a re-amortizing feature on jumbo loans that are over $417,000. Re-amortizing allows you to decrease your payment as you pay down your loan.

For more real estate news and to ensure that you are always up to date with what is going on in the real estate world, contact professional realtor Cary Amo in Lafayette, California.

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