This special mortgage program utilizes the benefits of a fixed rate conventional loan outlined previously, with increased loan amounts for higher priced properties. Based on county limits these loans can go above the traditional limits but stay below Jumbo loans, with a maximum of $625,500 in many counties.
Guidelines and Parameters
The High Balance Conventional Fixed Rate Loan has many of the same features as the Conventional Fixed Rate Loans with one notable exception. These loan products are limited to a 90% loan to value or combined loan to value of your loan. There are no exceptions to this rule.
30-year fixed rate
This is the most common mortgage that homebuyers compare rates to. The rate is good for 360 months (30 years) and is amortized over that time period to payoff.
20-year fixed rate
Typically there is not much difference in rate between the 30-year fixed and the 20-year fixed rate mortgage. This rate is based on 240 months and as the term decreases to pay back, the payment owed increases.
15-year fixed rate
This mortgage will be due in full in 180 months. It will have an even higher payment than the 20-year term.
10-year fixed rate
The 10-year fixed rate is the shortest term available right now. It is due in 120 months and accompanies the largest payment.