Conforming vs Jumbo Loans?

Asked by Olimits7, Nutley, NJ Mon Oct 15, 2012

I know for a conforming loan the amount needs to be less or equal to $417K. However, is property taxes and insurance included in the loan amount or is this separate?

For example, if I put 20% as a down payment and it gets me to $405K loan amount. And I want to include the property tax and insurance, for example $15K, within my loan payments.

Would this then make the loan a "jumbo" instead of "conforming" since the total is now $420K, or are property tax and insurance added to my monthly payments differently and this $15K won't effect the $405K loan amount?

Thank you!

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4
Kyle Kovats, Agent, Livingston, NJ
Thu Nov 21, 2013
Conforming loan limits do vary for every county in the state. Essex County happens to be $625k. Any and all questions that you have regarding financing and loans are best forwarded to mortgage brokers. A guy I would highly recommend having a conversation with is Shane Force of Atlantic Home Loans. One of the few mortgage brokers who will not constantly hound you if you call him. 973-219-4195
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, ,
Tue Oct 16, 2012
Hi Olimits7,

Actually, the conforming loan limit in Essex County NJ is $625,500.

The escrow account is separate and has no bearing at all on you loan amount but it will affect how much money you have to bring to closing.

Your annual taxes and insurance will be divided by 12 months and then added to your monthly payment.
0 votes
Maria Gilda…, Agent, Manchester, CT
Tue Oct 16, 2012
Your loan amount should not be increased by the property taxes and home owner's insurance.
The property taxes and insurance affect the monthly mortgage payment if wrapped up into the loan but not the loan amount.

Please consult your loan officer.
0 votes
Cristian Nav…, Agent, Nutley, NJ
Mon Oct 15, 2012
Hi Olimits - if you want to get the best answers for all of your Home Loan questions, I recommend you have a conversation with a Mortgage Professional.

Here's a great Mortgage Professional that I've referred many clients to.

Ken Lombardi - REMN
Email: klombardi@remn.com
Cell: (973) 632-3487

He knows his stuff and takes the time to make sure his clients get all of the details they need to make informed decisions.

Good Luck!

----------------
Cristian Navas
Coldwell Banker Franklin Realty

office: 973.235.1312
cell: 973.902.7242
email: cristian.navas@coldwellbanker.com
website: http://www.navaslistings.com

"Tambien hablo espanol si lo prefiere."
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