Looking to buy a larger, luxurious home? A jumbo mortgage might be the right type of home loan for you. Let the licensed mortgage specialists at Cliffco Mortgage Bankers, your Long Island mortgage banker, guide you through the process.
What Is a Jumbo Mortgage?
Jumbo mortgages, also known as jumbo loans, are home loans with an amount that exceeds conforming loan limits imposed by Fannie Mae and Freddie Mac, the two government-sponsored enterprises that buy mortgages from lenders. The limit is $417,000 in most parts of the United States, but it’s $625,500 in the highest-cost areas and in-between in other areas.1
To clarify, conforming high-balance loans typically have higher interest rates, stricter underwriting, and larger down payment requirements than standard conforming loans, but are generally priced lower than jumbo loans. In addition, limits might be different for multi-unit properties.
Jumbo loans are available for primary residences, second or vacation homes and investment properties, and are also available in a variety of terms. Jumbo loans are available in a variety of fixed-rate or adjustable rate loan options. Extra loan features such as temporary buydowns might be able to be added.
With jumbo loans, borrowers will receive the convenience of one loan for the entire loan amount, but they’ll earn equity at a slower pace since payments during the first several years go primarily toward interest instead of the principal balance.
Contact Cliffco Mortgage Bankers today at (516) 408-7300 or email firstname.lastname@example.org to learn more about jumbo mortgages and if you qualify. Our loan experts can help you achieve your dream of home ownership, and answer any and all questions you might have about these loans and how to get a mortgage loan.
1 The loan limits stated are valid through December 31, 2015.