Finance
A conforming loan in Oklahoma is a mortgage that:
AIs insured by FHA
BMeets Fannie Mae/Freddie Mac guidelines, including loan limits✓ Correct
CHas a fixed interest rate only
DIs guaranteed by the VA
Explanation
A conforming loan meets the underwriting guidelines of Fannie Mae and Freddie Mac, including loan limits set by FHFA. Conforming loans can be sold on the secondary market, keeping mortgage funds available in Oklahoma.
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Key Terms to Know
Discount Points
Prepaid interest paid to a lender at closing to reduce the mortgage interest rate, with each point equal to 1% of the loan amount.
AmortizationThe gradual repayment of a loan through scheduled periodic payments that cover both principal and interest.
Adjustable-Rate Mortgage (ARM)A mortgage with an interest rate that changes periodically based on a financial index, usually after an initial fixed-rate period.
Loan-to-Value Ratio (LTV)The ratio of a mortgage loan amount to the appraised value or purchase price of a property, expressed as a percentage.
Math Concepts
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