A Jumbo mortgage is a home loan that does not conform to the guidelines established by Fannie Mae or Freddie Mac or exceeds the conventional loan limit is called a Jumbo mortgage loan. In most states, home loans that are between $417,000 to $1,000,000 are considered Jumbo Mortgages.
These loans have slightly higher interest rates than conventional home loans. Usually the spread is between one to two full points higher. If a conventional loan is @ 5.5%, more then likely jumbo rates will be around 6.5%. Since 2008, jumbo rates have skyrocketed. The reason for this is because investors who purchase jumbo loans, incur a bigger risk, there fore they past the risk to the borrower.
Anything over $1 million to $5 million is consider a Super Jumbo Mortgage Loan. These loans tend to have a little higher rate then Jumbo mortgage loans; although in some cases they are the same.
If you want up-to-the minute rate quotes from the top jumbo lenders in the market today, please contact us!
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