A conforming 30-year fixed-rate mortgage is a home loan that is given to buyers in Roseville, California and surrounding areas that meet Fannie Mae or Freddie Mac guidelines.
A fixed rate means the interest rate is fixed for the life of the loan. This interest is locked at the time of purchase, and will be dependent on current mortgage market conditions. Your Chris Reese Mortgage Team Loan Officer can discuss current interest rates and how they impact your monthly mortgage payment.
Conforming loan limits are loan limits set by Congress in regards to home loans. In 2009, Congress re-approved the loan limit of $417,000 for conforming loans. This is the limit that all Fannie Mae and Freddie Mac loans must fall under. The state of Hawaii has a higher loan limit, due to a higher cost of living.
The lending industry also sets debt-to-income ratios. This ratio will vary dependent on lender criteria and your current situation.
The industry standard is 45 percent debt-to-income. This means that a borrower’s debt cannot exceed more than 45 percent of the borrower’s gross income. This will ensure that the debtor has enough income to cover all of their financial obligations.
In conforming mortgages, a loan-to-value acts as a guide for lenders and will enable your Loan Officer to offer a general maximum loan amount you qualify for.
The amount of money you put towards your home purchase, known as a down payment also impacts your debt-to-income as well as your monthly mortgage payment.
Contact the Chris Reese Mortgage Team today to discuss your home loan options and how a 30-year fixed conventional loan might work for you.
If you are in Roseville, CA or the surrounding areas, call 916-502-1656.
What is a Conforming 30-Year Fixed Rate?
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