These have long been the most common loan type, over the past couple years they have lost ground to government programs such as FHA and VA. These are also commonly known as Fannie Mae and Freddie Mac loans. If you currently owe less than 80% of your homes value, you should take a look at today's 30 yr fixed rates and conforming ARM rates

 

The rapid decline in home values has led to conforming mortgages being utilized less and less. This is because they require private mortgage insurance (PMI) on loans that are greater than 80% of the appraised value. While it is true that FHA also requires mortgage insurance, the FHA insurance is typically less expensive and FHA will allow for loan to values (LTV) up to 97.75% for no cash out refinances and 96.5% for purchases. Most Conforming mortgages will have a maximum ltv of 90% or 95%.

 

If you currently have a Fanne Mae of Freddie Mac loan, you need to explore refinancing at today's low rates. Through the HARP program, if you have a Fannie/Freddie loan, you may be able to obtain a mortgae up to 125% of your homes current value without having to pay mortgage insurance.

 

If you are purchasing :

 

If you can put 5% or MORE down, you should look at conforming mortgages as an option. In most scenarios, conforming loans do not beat FHA until you get to a 10% downpayment, but they are worth a look. Check out today's conforming interest rates here.

 

Maryland Mortgages | Virginia loans | DC purchase | First Time Homebuyers | Josh Burley