Apartment living is a way of life for many. But there is something to be said for having a place to call your own. A house allows you to have more space, and the freedom to design and use it any way you want. Now if the idea of home ownership seems appealing to you, you can get started on the process of purchasing a house. The most important part of this process is getting a mortgage.
For those who may not know what a mortgage is, it is a loan (with a legal agreement) given to you by a bank or another lender that enables you to cover the cost of a home. You can pay back the loan over the course of years or even decades. So unless you have hundreds or thousands of dollars lying around, you would need a mortgage to buy a house. Mortgages or home loans are of different types such as FHA loans, VA loans, Conventional loans, and Jumbo loans, besides others. Let’s take a look at two of these- Jumbo and Conventional loans- and see how they are different and who they are useful for.
These loans are simple and straightforward and are for amounts up to a maximum of $417,000. For high-value real estate markets such as New York, this limit is raised to $723,000. Borrowers need excellent credit to qualify and can repay the loan generally between 10 and 30 years. They also need to give a 20 percent down payment upfront and have a consistent and adequate income to justify the risk. These are one of the most common types of loans.
If the home you plan to purchase comes with a particularly steep price tag, you may need to apply for a jumbo mortgage to finance it. These loans are often more than half a million dollars and up, and are designed to finance luxury properties and homes in highly competitive real estate markets. They differ from the less-sizeable conventional loans in many ways.
Which one is better?
There are many factors you need to consider and doing so with a trusted lender is very important. Nationwide Home Loans (NHL) is a licensed mortgage lender based in Fort Lauderdale, Florida, and known for its outstanding service and mortgage expertise. Our knowledgeable and experienced lending specialists can guide you in deciding the loan most beneficial for you. The first thing to remember with jumbo loans is that you are held to a higher level of scrutiny as compared to when you apply for a conventional loan.
But if you are purchasing a property whose value exceeds $417,000, you may need a jumbo loan. The general argument, however, is that you should try to stay below conventional loan limits because of lesser scrutiny and lower interest rates. If you do need a bigger loan, you can think about a combination loan instead of a jumbo loan. A combination loan splits the property mortgage into two loans, both of which fall under the conventional loan limit. So you end up paying lower interest on both loans, versus higher interest on a single jumbo loan. But if your property is in the millions, getting a jumbo loan may be more beneficial for you.
At NHL lending, we offer jumbo loans to those who qualify and are buying higher priced homes. By meeting the financial requirements and having a good credit score, getting jumbo mortgage loans in Fort Lauderdale, FL is easy with NHL lending. On the other hand, getting a conventional loan is also a hassle-free process with Nationwide Home Loans. We offer both fixed rate and adjustable rate options.
We are confident that we offer the best conventional home loan rates in Fort Lauderdale. Our mortgage process allows everything to flow smoothly and efficiently, so you can get to closing faster and more easily than with any other lending company. Our staff is happy to assist you every step of the way. Call us today at 888-995-6624 for a free no-obligation consultation for all your loan needs.