Are non-conforming mortgage loans a good choice?
Whether non-conforming mortgage loans are good for borrowers depend on their personal situation. However, more often a borrower would be better off with a conventional loan, rather than a non conforming mortgage loan, for a number of reasons. To start with, conventional loans are safer for both the lender and the borrower. The amounts that are borrowed are reasonable and therefore can be paid back. Additionally, borrowers are required to share more information, which further reduces the risk. Thus, since the chance of foreclosure is much smaller, lenders offer better interest rates than those of nonconforming mortgage loans. And yet, there are certain cases when non-conforming mortgage loans can be the better choice for borrowers.
