4725 Mercury Street Suite 202, San Diego, CA 92111 - NMLS#230144

Fannie Mae / Freddie Mac Loan Programs

  • Conforming 30 Year Fixed Rate
    • This is the “standard” amortization term for most mortgages.  It allows you to spread your payback over a longer period reducing the monthly payment cost to own your home.  A 30 Year Fixed mortgage can be paid off in less time than 30 years, by making extra payments or paying extra each month without locking you into that higher commitment.
  • Conforming 15 Year Fixed Rate
    • This second most common amortization term for mortgages.  15  Year Fixed Rate mortgages have been around for decades and often the preferred choice for investors wanting to payoff investment properties as quickly as possible… or for discriminating homeowners who have the financial means and desire to payoff their home quickly.
  • Other Fixed Rate Mortgage Options
    • 20 Year Fixed Rate
      • This option may be desirable if the loan you are refinancing has between 18 and 24 years remaining and you don’t want to “start over” paying off your mortgage.
      • This option may not be the best choice for a mortgage if you are purchasing a home and want to pay your new mortgage off quickly.  The 15 Year Fixed offers significantly better rates and will save you thousands of dollars over the life of the loan compared to the 20 Year Fixed Rate.
    • 10 Year Fixed Rate
      • This is a great option for refinancing an existing 15 Year Fixed Rate mortgage when you don’t want to start the clock over again on getting your mortgage paid off, but you want to take advantage of lower rates.
  • Conforming ARM (Adjustable Rate) Mortgages
    • Fixed Period Adjustable Rates
      • 5/1 Conforming ARM
        • Interest rate remains fixed for 5 years and then adjusts to current market once a year thereafter.
      • 7/1 Conforming ARM
        • Interest rate remains fixed for 7 years and then adjusts to current market once a year thereafter.
      • 10/1 Conforming ARM
        • Interest rate remains fixed for 10 years and then adjusts to current market once a year thereafter.
      • 30 Year Term
        • All Conforming ARMs are amortized over 30 years.  No shorter term is available.

High Balance Loan Programs are home mortgages for loans above $417,000 with a maximum loan amount determined by the state and county the property is located in.

  • High Balance loans were created by Fannie Mae and Freddie Mac to extend their loan programs beyond the standard conforming loan limit of $417,000.
  • The maximum loan amount available for a single family residence under High Balance is $625,000, but the cap for your area could be less.
  • The High Balance mortgage products are based on their conforming counterparts described above.
    • 30 Year Fixed Rate
    • 15 Year Fixed Rate
    • 5/1 ARM

Fannie Mae / Freddie Mac Loan Programs

Jumbo loans amounts range from $417,001 to $2,000,000. These loan programs are referred to as Nonconforming because they are not Fannie Mae or Freddie Mac products. In today’s current credit markets, jumbo loans are often “portfolio” products which means that they are specific to the bank that developed them. The rates for these loans are not as low as Fannie Mae and Freddie Mac products which are priced in a more competitive marketplace.

  • 30 Year Fixed Jumbo
  • 15 Year Fixed Jumbo
  • 5/1 ARM Jumbo
  • 7/1 ARM Jumbo

2nd Mortgages / HELOC

This product group was hit hard by the recent collapse of the housing market. There are very few of these programs left and typically they are available only in conjunction with a first mortgage. The Loan to Value (LTV) for these 2nd mortgage products is much lower than in the past, but can often serve to cover the gap between a Fannie Mae / Freddie Mac loan program and the total amount needed to finance your transaction without requiring a Jumbo product.