Mortgage Information

There are numerous lending institutions that offer a variety of mortgage products. Financing options and rates can vary widely, so it is important to do your research and shop around to ensure you get the mortgage that best meets your needs at the best price.

Current markets are volatile. Interest rates and availability vary daily. We always suggest you shop at least two mortgage lenders when purchasing property. We encourage you visit our link library for a list of suggested lenders. updated 21 April 2009

Types of Mortgages:

  • Conventional. A type of mortgage in which the underlying terms and conditions meet the funding criteria of Fannie Mae and Freddie Mac. About 35-50% of mortgages, depending on market conditions and consumer trends, are conventional mortgages. In other words, Fannie Mae and Freddie Mac guarantee or purchase 35-50% of all mortgages. Conventional mortgages may be fixed-rate or adjustable-rate mortgages. The secondary market for conventional mortgages is extremely large and liquid. Most conventional mortgages are packaged into pass-through mortgage-backed securities, which trade in a well-established forward market known as the mortgage TBA (to be announced) market. Many conventional pass-through securities are further securitized into collateralized mortgage obligations (CMOs).
  • Federal Housing Administration (FHA). The FHA market comprises about 70% of all loans today in Maricopa County. Lending limits vary by county. As of this writing Maricopa County limits are $346,500 (updated 15 Dec 2008). See the latest limits here at the FHA website. Mortgage insurance is a policy that protects lenders against losses that result from defaults on home mortgages. FHA loans require mortgage insurance primarily for borrowers making a down payment of less than 20 percent. Mortgage insurance is charged to the homeowner each month at the rate of .5 percent per year of the total loan amount. FHA also charges an upfront mortgage insurance premium of 1.5 percent. See all the mortgage guidelines at the FHA.com website.
  • Veteran's Administration (VA). Qualified Veterans and Active Duty Military can obtain a loan of up to $729,000 with no money down.
  • USDA Rural Loans. An $86 billion dollar portfolio of loans and nearly $16 billion in program loans, loan guarantees, and grants.

Links

$8,000 First-Time Home Buyer Tax Credit

http://www.federalhousingtaxcredit.com/2009/home.html

HUD Single Family Housing Programs

http://www.hud.gov/offices/hsg/sfh/ins/singlefamily.cfmHUD's

"Good Neighbor Next Door"

http://www.hud.gov/offices/hsg/sfh/reo/goodn/gnndabot.cfm

Your Way Home AZ - $15,000 in homeownership assistance

http://yourwayhomeaz.com

City of Phoenix Housing Department

http://www.phoenix.gov/HOUSING/index.html

Mortgage Qualification Calculator

This calculator will help you determine how much money you qualify to borrow. The results are informal. You will be subject to a credit approval from your financial institution taking into consideration existing debt load, amount of down payment, income and other variables.

Mortgage Payment Calculator & Amortization Table

This calculator will help you determine what your mortgage payments will be based on purchase price, interest rate and mortgage term, as well as other factors. The amortization table shows what the interest and principal payments will be over the term of the mortgage.