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Jumbo or non-conforming loans,
are mortgages with loan amounts greater than the conforming loan limit by Fannie Mae and Freddie Mac. 2006 limits in Minnesota are as follows: |
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One-unit properties: $417,000 |
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Two-unit properties: $533,850 |
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Three-family loans: $645,300 |
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Four-family loans: $801,950 |
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Why higher rates on jumbos?
In part risk (jumbo loans are bought and sold
on a much smaller scale than conforming). However, the
difference between jumbo and conforming rates varies with
the economy. When mortgage money is plentiful the spread
decreases and when money is tight the spread is greater.
For a more detailed explanation see the budget report below. |
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Congressional Budget Office |
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Why work with a Mortgage Broker rather than a Direct Lender?
If you are a reasonably astute shopper, you will do better dealing with a mortgage broker because they do not add any net cost to the lending process. They perform functions that would otherwise have to be done by employees of the direct lender. Furthermore, because mortgage brokers deal with multiple lenders -- they can shop for the best terms available on any given day. In addition, they can find the lenders who specialize in various market niches that many other lenders avoid, such as stated income loans, jumbo pay option ARMS, loans with minimal or no down payment, and so on.
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Choose your payment amount.
With the COSI ARM pick-a-payment loan you can decide to which payment to make each month. |
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30 Year Amortization |
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15 Year Amortization |
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Interest Only Payment |
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Less Than Interest Only |
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| On Pay Option ARMS, one can choose which financial index the rate is tied to. COFI- 11th District Cost of Funds, LIBOR- London Inter Bank Offering Rate or MTA- Monthly Treasury Average. |
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