What is a Jumbo Loan?
Jumbo Loans exceed the maximum loan amounts established by Fannie Mae and Freddie Mac conventional loan limits. Currently, loan amounts above $679,650 for a single family home are considered ‘Jumbo’.
What are the Interest Rates for Jumbo Loans?
Rates on jumbo loans are typically higher than conforming loans. Jumbo Loans are typically used to buy more expensive homes and high-end custom construction homes.
What are the down payment requirements for Jumbo Loans?
Typically Jumbo Loans require a higher down payment than traditional loans.
Are there other options to obtain a lower interest rate on a Jumbo Purchase?
New products hit the mortgage market often. One good option is to break up a Jumbo Loan into two loans with just 10% down. Here’s an example:
$850,000 Purchase Price
$679,650 First Mortgage
$85,350 HELOC or, Home Equity Line of Credit
The advantage above helps to secure a better rate on the First or Primary Mortgage because it is NOT considered a Jumbo Loan. Another huge advantage is loan qualifications
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