Jumbo Mortgage
If you are buying a luxury home and need to finance more than $417,000, you may need a jumbo mortgage.
A jumbo mortgage is a home loan exceeding the conforming limit set by Fannie Mae and Freddie Mac, government sponsored entities who buy home loans from lenders. In most areas of the United States, the conforming limit is $417,000.
Jumbo mortgages come in fixed rate and adjustable rate options. Lenders consider these mortgages high risk because luxury properties are harder to sell if the borrower defaults, so borrowers may pay higher rates than the best mortgage rates available.
Because Fannie Mae and Freddie Mac do not buy jumbo mortgages to help free up banks lending capital, these loans are usually only offered by major banks who will keep these loans for the duration of the loan term.
Consumers with a verifiable income high enough that the mortgage payment is no more than 38% of that income and who have at least a 20% down payment of the purchase price or 20% equity, may qualify for a jumbo mortgage.
On Best Mortgage Rates, you can find the best mortgage rates for a jumbo mortgage.
If you dream of owning your own home and are in the financial position to buy a luxury property, a jumbo mortgage may be right for you. Lenders have posted their best jumbo mortgage rates here in one place for your convenience. To find out if you qualify and lock in your rate, contact a lender today.
