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I asked this before and never got an answer, can someone please help with "Conforming Jumbo" ?

I had heard of "conforming" and also of "jumbo", never of "conforming jumbo". What is that type of loan ? Is this a new Obama thing where jumbo loans do not need PMI? by SageMister from , . Aug 13th 2009 Reply


Michael DiMarzo (mdimarzo)
#6 ranked lender in Maryland - 21 contributions

Conforming is a Fannie Mae Freddie Mac guide that lets the lender know that they will gaurantee the loan. There are programs out right now that depending on city, state they have increased the loan amounts from fannie and freddie guide's to assist homeowners to reduce their rate's.Jumbo rate's could be the same as conforming depending on a lot of factors. Please call me and I can answer your questions a little easier. 877.791.4968

Aug 14th 2009
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Jason Diperstein (jdiperstein)
#13 ranked lender in New Jersey - 3 contributions

SageMister,This is a bit complicated but the easiest way to understand it is to break down the terms. Conforming means that Fannie and Freddie guidelines are met. Jumbo relates to loan size restrictions. The typical conforming loan limit is $417K, but some areas have higher limits. PMI relates to the LTV (Loan to Value) limits. Conforming or Conventional limit is 80% LTV for cash-out refi. Rate and term is higher (97.75%). Anytime a borrower moves beyond that 80% threshold there will be PMI.Hope this helps, let me know if you need further clarification.Regards,Jason DipersteinE Mortgage Management800.793.9633 ext. 156jdiperstein@emmloans.comhttp://emortgagemanagement.com/?page_id=72

Aug 17th 2009
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