Have you ever wondered how people purchase those million dollar homes? Although many put down substantial down payments, several finance a mortgage just like the rest of us. These highly priced mortgages are known as Jumbo and Super Jumbo Mortgages.
Jumbo mortgages are loans that exceed $417,000 as of 2006. Super Jumbo loans are mortgage loans that are typically $750,000 or higher. These limits are adjusted yearly to reflect the current market changes.
Jumbo mortgages are also known as non-conforming loans because they do not comply with FHA underwriting mortgage limits that are set each year. Fannie Mae and Freddie Mac agencies buy the majority of mortgage securities from the loan originators. They have a limit on the maximum dollar value of each mortgage they will buy that is in accordance of the FHA underwriting mortgage limits. In 2006 it was raised to $417,000. Insurance companies and large banks usually help finance the excessive mortgages like Jumbo and Super Jumbo mortgages that can go up to six million dollars.
Jumbo and Super Jumbo mortgages usually have slightly higher interest rates than that of a conforming home mortgage, that is a mortgage under $417,000. Interest rates on these non-conforming loans also vary according to the home value and property classification.
If you are interested in a Jumbo or Super Jumbo loan you can go to jumboloans.com and fill out one single form. Afterwards up to four lenders will reply with their best offer. This form does not require your social security number. It is also not an application for credit but connects you to the top lenders that serve your area.
Afterwards, you can contact one or all of these lenders to find out more information about the loan process, requirements, and interest rates estimate for the home you potentially want to purchase.
Author: Milos Pesic