About Government Refinance and Home Purchase Programs

Information and Updates on Government Mortgage Programs
Filed under Government Mortgage Financing Programs News

Recent reports have shown an uptick in the number of “jumbo” mortgage refinances and refinances into 15 year mortgages rather than the more traditional 30 year term.

Advantages of 15 year mortgages

There are several advantages to getting a 15 year mortgage rather than a 30 year. First, interest rates on 15 year mortgages are normally more than a half a percent lower than their 30 year counterparts. Second, by paying off the mortgage twice a fast, the amount of interest paid over the life of a 15 year loan is significantly lower that a 30 year loan. The main disadvantage to 15 year mortgages is that monthly payments are higher. But for families who can comfortably afford higher payments, a 15 year mortgage is often a very wise choice. Contact us to learn more about rates and costs associated with a 15 year mortgage.

On jumbo loans

The term “jumbo loan” refers to a loan that is larger than the national $417,000 loan limit for conforming loans. Jumbo loans have traditionally had higher interest rates than conforming loans but recently rates on jumbos have as low or sometimes even lower than conforming loan rates. If you have a large loan and feel your rate is too high, contact us in the sidebar right away to see about refinancing while jumbo rates are dipping to new lows.

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