Your Guide To Understanding Jumbo Mortgages
Jumbo Mortgage Loans
What is a Jumbo loan?
A jumbo loan is a mortgage that exceeds the loan limit for an agency mortgage in the continental United States that amount is $417,000. These loans are not eligible to be financed through Fannie Mae, Freddie Mac, FHA and instead are sold as mortgage back securities on the open marketplace
What type of loan programs are eligible for a Jumbo loan?
Generally you can find almost every type of loan program that you would for a conventional finance. Jumbo loans are available on fixed 15 or 30 year terms, adjustable rate loans of 3,5,7 and interest only program. These program options will vary from lender to lender.
What type of interest rates should I expect with a jumbo loan?
This will depend on how much equity you have or how large your down payment is. Provided this is over 10% of the homes value the rates could vary between .5% up to 2% higher than a conventional mortgage.
What is a conforming jumbo loan?
This is a new type of mortgage loan that has been introduced as part of the economic stimulus package, to provide better interest rates and financing opportunities to home owners with larger mortgage balances. This loan is eligible for sale to Fannie Mae and Freddie Mac on loan sizes up to $729,000. Eligibility is based on the county of residence.
What is a Super Jumbo Loan loan?
This would apply to a mortgage that is over two million dollars.
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