Does a 15 year loan make sense? - 05/30/08 05:43 PM
Most homeowners want to get their house paid off as quickly as possible. It's in our American psyche. Not having to make a large payment, and not having to worry about losing your house because you don't have a loan are huge emotional benefits.
I understand these emotional benefits. However, I think many people make the mistake of isolating the payoff of the mortgage as the "high and mighty" goal while downplaying other important financial objectives, not to mention the tax ramifications of paying down the mortgage.
Here is when a 15 year loan does not make sense:
- The homeowner … (8 comments)

Buying Strategies With A Conforming Jumbo Loan - 05/06/08 06:23 PM
As you may be aware, Freddie Mac and Fannie Mae have temporarily raised the limits for the size of a loan (called an agency jumbo loan, or conforming jumbo loan) that they will buy to $729,750 in certain high cost areas, such as San Mateo, Santa Clara, San Francisco, and Marin Counties.
What you may not be aware of are the guidelines are different for the agency jumbo loans than they are for the traditional conforming loans.
The agency jumbo loan will allow a borrower to borrow up to 90% of the sale price. Mortgage insurance is required above 80%.
Seller contributions are allowed up … (2 comments)