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Jumbo Loans
Comparing Jumbo Loans and Jumbo Refinance rates from
multiple lenders before you make your home financing
decision is always a great idea.
A Jumbo Loan is any mortgage loan above the conforming
loan limit.
This standard is set by the two largest secondary market
lenders, Fannie Mae and Freddie Mac.
On February 13, 2008 President Bush signed an economic
stimulus package that temporarily increases the
conforming limit to $729,750 until December 31, 2008.
The limit for any area would be the greater of (1) the
2008 conforming loan limit ($417,000); or (2) 125% of
the area median house price, but no more than 175% of
the 2008 conforming loan limit ($729,750, which is 175%
of $417,000)
Jumbo Loans typically have a higher interest rates than
conventional loans of a lesser value, although only
slightly higher. The rate differential occurs because
mortgage lenders generally have a higher risk on these
Jumbo Loans than conforming loans as well as some
additional underwriting restrictions and higher a
Origination fee. |
