Would you like money available in case of
emergencies? Need to send your kid to college? Thinking
of improving your home? A Home Equity Line of Credit (HELOC) from
Somerset Investors Corp. may be just what you’re looking for. A
HELOC works a lot like a credit card with a much lower interest rate. You
will have money available, secured by the equity in your home, that you can
draw on and use at any time. Or, you can decide to withdraw the
entire amount in one lump sum at closing. Best of all, the interest
is usually tax-deductible!
Somerset Investors Corp. can find you the perfect loan and start your home purchase off right. With hundreds of loan programs available, we’ll help you match your needs with a loan you’ll love for as long as you own your home. Somerset Investors Corp. can find you the perfect loan and start your home purchase off right. With hundreds of loan programs available, we’ll help you match your needs with a loan you’ll love for as long as you own your home.
categories of conventional loans exist, the most common and familiar being the
fixed rate mortgage. In the cases of fixed rate mortgages, the borrower will
lock in an interest rate, and pay down both the principal and interest on the
loan at that interest rate every month until the mortgage is paid off. The most
typical term of a fixed rate loan is 30 years, though fixed rate mortgages can
also be obtained for much shorter terms, the primary difference being in the
size of the monthly mortgage payment.
loans are known as conforming loans. In these cases, an arrangement is made
between borrower and lender that comply with the stipulations of two federally
run mortgage trading companies (or Government Sponsored Entities – GSEs) Fannie
Mae (FNME) and or Freddie Mac (FHLMC).
Mae and Freddie Mac do not directly approve or deny loans. They buy and sell
home mortgages, working with lenders to make home ownership easier for people
to attain. Lenders like to sign up borrowers with conforming loan, because they
can then sell these loans to Fannie May or Freddie Mac in order to more quickly
receive the funds coming to them, and use those funds to make other
investments. Fannie Mae and Freddie Mac, in turn, then repackage these loans to
sell to investors as securities.
current guidelines for a conventional Fannie Mae loan set a maximum purchase
price for a single-family home at slightly above $415,000 (though residents of
Alaska, Hawaii, or Guam may be able to qualify for an even larger loan).
interest rate as well as the short- and long-term pricing on a conforming loan
is determined primarily by the type of loan applied for. Also taken into
consideration will be the amount of funds you already have to contribute to
closing costs, your credit rating, credit score, and credit history, your
employment history, and the type and location of the home in question.
forms of conventional loans are nonconforming loan instruments that do not meet
Fannie Mae or Freddie Mac loan qualifications, such as jumbo loans, or loans so
large they fall outside the Fannie Mae and Freddie Mac loan limits (or purchase
limits). Jumbo loans are provided by private investors and as such ordinarily
come with much higher interest rates than conforming loans.
entities from a local to a federal level and private entities alike have worked
to develop loan programs that make home ownership a reality for many people
considered under-qualified for traditional mortgages. These include loans for
first-time homebuyers and people with a low-to-moderate income that are insured
by the Department of Housing and Urban Development (HUD) via the Federal
Housing Administration (FHA).
HUD and the FHA do not make loans directly, rather they insure loans, meaning that the lender still gets paid back even if you default on the home loan.