Conforming Loans – Conforming Mortgage Refinance

• Loan amount up to $417,000
• Meet Fannie Mae and Freddie Mac guidelines
• Government insured
• Meet lenders conforming guidelines
• A paper loans
• FHA loans

A conforming mortgage loan is any mortgage loan that is $417,000 and less.  Conforming loans meet the Fannie Mae and Freddie Mac guidelines and are backed by the federal government.  Conforming mortgage loans will generally allow the borrower to achieve the lowest rate and lowest payment when compared to non-conforming loan amounts.  This is due to the fact that conforming mortgage loans are backed by the federal government.  Conforming mortgage refinance generally allows the borrower to put down a smaller down payment on their home or refinance their home to a higher loan-to-value than non-conforming loans.

Non-Conforming Loans – Non-Conforming Mortgage Refinance

• Loan amounts exceeding $417,000
• Does not meet Fannie Mae and Freddie Mac guidelines
• Includes Sub-prime mortgages
• A paper loans
• Hard money loans

Non-conforming mortgages are mortgage loans that exceed $417,000 and also loans that do not meet traditional lending guidelines.  Non-conforming mortgages include high credit risk, high loan-to-value and other parameters that do not meet conforming guidelines.  There are many lenders that specialize in non-conforming loans but borrowers will generally pay a higher interest rate than they would achieve with a conforming loan.