|By PR Newswire||
|December 5, 2013 11:41 AM EST||
SAN DIEGO, Dec. 5, 2013 /PRNewswire-iReach/ -- LoanLove.com is a borrower advice website that provides detailed insights into the mortgage industry in a fun and entertaining way. The team at LoanLove.com is devoted to help empower both first time and experienced homeowners with valuable resources, first-class knowledge and connections to top-rated industry professionals and has the mission of helping consumers and borrowers to obtain the latest information on mortgage lending trends, the real estate market and the U.S. financial landscape in order to help them obtain a home loan that they will love. The loan advice website excels at providing readers and loan borrowers with essential advice when working with mortgage loans and refinancing through their many articles and guide videos. In a recent article, titled "Coming to Terms: Understand Conventional vs. Conforming Loan Types", the website explains the different terminology used when discussing mortgage loans.
First of all the article explains: "Maneuvering the maze of finances involved in the loan application process is tough enough without someone throwing a vocabulary quiz at you. Unfortunately, the terms tossed your way as you consider financing options for the home of your dreams can start to all sound alike. Worse yet, it is not unusual for the media, websites or even real estate professionals to confuse the issue further by using terms interchangeably, like conventional vs. conforming loans, that aren't actually synonymous. So what is a home-buying newbie to do?"
Luckily the guide goes on to give a mortgage terminology "cheat sheet" that explains some of the more commonly confused loan terms. Understanding these terms better can not only help the borrower not to feel so lost when searching for a loan, but will help them to identify which is the best home finance option for their situation and avoid them being misled by those who just want to sell them on a particular loan type for their own gains.
The new guide helps borrowers to understand the difference between:
- Fannie Mae and Freddie Mac
- VA and FHA loans
- And of course – conventional and conforming loans
Regarding conforming loans, the Loan Love guide says: "Conforming to what, you might ask? A mortgage loan that is "conforming" refers to one that is within the conforming loan limits set by Fannie Mae and Freddie Mac, currently at $417,000, while also conforming to the funding criteria of Freddie Mac and Fannie Mae. A nonconforming loan, then, would be a loan that does not meet these requirements. So-called "jumbo" mortgage loans would fall into the category of nonconforming loans."
Conventional loans are also discussed: "This definition is simple: a mortgage loan that is not made or insured by the government is known as a conventional loan. That means by definition, a conventional loan may also be conforming, but not all conforming loans are conventional loans. Loans above the lending limits set by Fannie Mae and Freddie Mac are often called jumbo loans. The majority of conventional loans, however, follow the qualifying criteria that would make them conforming."
But which option is better? Loan Love says: "If you have an excellent credit history and are able to make a larger down payment, anywhere from 5 to 20 percent, choosing a conventional loan will usually snag you an attractive interest rate, while allowing you to avoid all the red tape. A higher down payment also means your home equity will build more quickly."
To read the full article please visit LoanLove.com.
Media Contact: Kevin Blue, LoanLove.com, 949-292-8401, firstname.lastname@example.org
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