A Jumbo loan is a non-conforming conventional mortgage loan. It does not meet Freddie Mac and Fannie Mae guidelines and conforming loan limit of $510,400 for a single-family home. Jumbo loans are available for primary homes, vacation homes, and investment properties. They are available as adjustable rate and fixed rate loans. The average rate of interest on these loans is higher interest backed by stricter underwriting and large down payment requirements, typically because of the high risk involved.
Though a jumbo loan requires a high down payment, high credit score and reserves, the perks of getting this loan are also jumbo. Benefits include:
At Greentree Mortgage, we offer both jumbo fixed-rate and adjustable-rate mortgages:
The borrower’s monthly payments under the fixed rate jumbo loan remain consistent throughout the length of the loan term which can be 10, 15, 20 or 30 years.
With an adjustable rate mortgage, the rate of interest and monthly payments are adjusted according to the market movements after the introductory period, which can be 5, 7, or 10 years. The rate is usually adjusted every 6 months.
The underwriting and qualifying requirements for a jumbo loan are quite different from conforming mortgages. To qualify for a jumbo loan, the borrower’s:
Jumbo loan is an excellent choice for those looking to buy a luxurious higher priced home in posh area. For more information and advice get in touch with us today! Our mortgage consultants can help you determine whether or not a jumbo loan is a suitable for you and help you choose between a fixed rate and adjustable rate mortgage loan. We can also assist you with paperwork for jumbo loan application submission and get loan approval which otherwise can be stressful and a time-consuming process.