Jumbo Loan
What is a Jumbo Loan?
Jumbo mortgages are home loans that typically apply to larger loan amounts for homes in a higher price range. While convenient and in many cases the only option, jumbo home loans can carry a slightly higher interest rate than loans for lower loan amounts.
Each year, Fannie Mae (FNMA) and Freddie Mac (FHLMC), the government-affiliated agencies that market mortgages within the U.S., define the point at which a traditional mortgage ends, and a jumbo home loan begins. These types of loans are increasingly popular – and necessary – for buyers trying to borrow larger amounts to purchase or refinance a home.
The Benefits:
Jumbo mortgages are home loans that typically apply to larger loan amounts for homes in a higher price range. While convenient and in many cases the only option, jumbo home loans can carry a slightly higher interest rate than loans for lower loan amounts.
Each year, Fannie Mae (FNMA) and Freddie Mac (FHLMC), the government-affiliated agencies that market mortgages within the U.S., define the point at which a traditional mortgage ends, and a jumbo home loan begins. These types of loans are increasingly popular – and necessary – for buyers trying to borrow larger amounts to purchase or refinance a home.
The Benefits:
- Allows you to purchase a more expensive piece of property.
- A lot of similar options for loan programs as conventional loans, including fixed rate loans and adjustable rate loans with many options for differing loan terms as well.
- Simple and easy to understand.
- Lets you build home equity through increasing monthly principal payments.
