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mortgage question?

what is a 30yr fixed conforming ? Know of any solid mortgage brokers/co in the cleveland,oh area

Update:

looking to refinance

Update 2:

what are some really bad loan types that I should stay away from

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  • 1 decade ago
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    Thirty year fixed rate conforming mortgage:

    Thirty year fixed rate mortgage: a loan where the interest rate doesn't change for the full life of the loan, and if you make the same minimum payment every month, you will be done in 360 months, or thirty years.

    Conforming: Conforming to Fannie Mae and Freddie Mac standards. Among other things, this means the amount is $417,000 or less for 2006 for a one unit residence (higher in Alaska and Hawaii). This may or may not change January 1, 2007 - they usually announce in November. Since they had a record large increase this year and the market is now in retreat, I think that it's most likely this amount will be good for another year. This is an A paper loan, and whereas depending upon the lender, there may be better loans at a better rate cost tradeoff out there, there are none out there harder to qualify for. There should be no prepayment penalty unless you choose to have one in order to get a better rate at a lower cost.

    Source(s): Loan Officer and Realtor in San Diego. Website http://www.danmelson.com
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  • 1 decade ago

    except for heinz who shouldn't waste our time, everyone is kind of (but not exactly) right.

    A conforming loan is one that meets the criteria for purchase in the secondary market by Fannie Mae or Freddie Mac- the government sponsored entities that create a secondary market for mortgages. The criteria include loan amount, borrower characteristics (credit score, income ratio, debt ratio, etc), and property characteristics (fewer than 5 units, appraised at the required amount, etc).

    "30 year fixed" means that the interest rate it fixed. If the loan is an fully amortizing loan, then by making the identical minimum monthly payments, you will pay off the baalance in exacly 30 years. Note that the mortgage can also be nonamortizing (aka interest only or IO) for 30 years or partially amortizing (i.e. amortized over 30 years, with a balloon in 10 years).

    Suns & dlapasky answers are incomplete because the max loan limit varies by area. Leahs answer is incomplete becuase the amortizing period & maturity don't have to match.

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  • Anonymous
    1 decade ago

    A 30 year fixed, conforming is simply a mortgage with a rate that will not go up or down over the life of the loan. The life of the loan is 30 years (or until you pay it off or refinance).

    Conforming simply means that you fit into traditional lenders' guidelines. Good credit. No bankruptcies in the last two years. No foreclosures, open collections, etc.

    Source(s): I'm a licensed loan officer in Ohio. http://ohiomortgages@sbcglobal.net http://www.leahifft.com
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  • 1 decade ago

    A conforming load is any dollar amount under $350,650. If you want a larger loan it would be called a jumbo.

    As for mortgage brokers - check rates at the bank you already use or try Wells Fargo. I'm in the real estate business and a lot of my home buyers use them. Be careful if you're using one of those online companies - I won't mention their name but it starts with a D. I have a friend in the mortgage industry that says they're notorious for not disclosing fees and not having their paperwork in order by closing.

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  • 1 decade ago

    A conforming loan just means it is a standard 30 year fixed mortgage with a loan amount under $417,000. Once the loan amount exceeds that number it becomes a jumbo loan and is subject to higher interest rates.

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  • Anonymous
    1 decade ago

    Conforming is to the local custom.

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