Jumbo Mortgages – Getting Started

Nice contemporary home which likely needs a jumbo loan solution.If you are looking for information on jumbo loans and a platform to compare today’s jumbo mortgage rates from some of the leading US mortgage companies, you’ve come to the right place.

What Exactly are Jumbo Loans and Why Would I Need One?

Jumbo loans are available to eligible home buyers and homeowners who need to finance loan amounts exceeding their areas’ conforming loan limits. These limits are established by the Federal Housing Financial Agency.  If a loan amount surpasses the defined limit, Fannie Mae and Freddie Mac will not be able to purchase the loan in the secondary market. Thus, lenders who offer non-conforming jumbo financing programs will not be able pass these loans along to Fannie and Freddie . The result is less liquidity, greater risk, and higher interest rates.

What are Today’s Conforming Loan Limits?

At the time this page was written, any loan for a single family property greater than $417,000 was considered a jumbo loan. The limits increased to $533,850 for two-unit properties, $645,300 for triplexes and $801,950 for 4-unit homes. There are also many areas of the country where the limits were set higher. Because these numbers may vary and will change, you’ll need to speak with a mortgage professional who can help you determine the conforming loan limits for your area. Loans that exceed $650,000 are often considered super jumbo loans.

Popular Jumbo Loan Solutions in Today’s Marketplace & Where to Check for Rates

Luxury Miami Condominium

Use the links to the left to find more information on specific jumbo mortgage programs available in the marketplace.

There are a variety of fixed rate and adjustable rate jumbo mortgage solutions available from lenders and brokers in the United States. Below is a list (see bullets) of some of the most prominent financing options. There are lenders, especially community banks, which offer unique portfolio jumbo loan programs. Many of these institutions offer these portfolio products as a way to build relationships with borrowers and eventually earn their business for their other business’ channels (i.e. depository accounts and investment banking).

You can start your research with the product information below and in the rate tables available on ForTheBestRate.com. In order to see the jumbo mortgage pricing, simply enter in your loan amount and the pricing should reflect the adjustments from conforming rates. Also, be aware that interest only options exist for many jumbo loan programs which may be a good fit for home buyers and homeowners who only plan on being in their properties for a limited number of years. Rates are often slightly higher for jumbo interest only loan products as they add an additional layer of risk to what is already viewed as a riskier investment.

Please note that we’re not mortgage professionals and we do not dispense financial advice. We encourage you to speak with mortgage professionals serving your community, be it the lenders and brokers in the rate table on this site or though a local bank and/or credit union. Rates may vary for multiple reasons so you’ll need to speak with the companies for a comprehensive quote for your individual scenario.

Using the rate table

The majority of the mortgage companies represented in the rate survey on this page offer a variety of fixed rate (10, 15, 20, and 30 year terms) and adjustable rate financing solutions (3/1, 5/1, and 7/1 ARMs) for 1-4 unit residential properties (i.e. single family homes, duplexes, triplexes, and 4-unit properties). These mortgage companies typically allow properties to be used as primary residences, second homes (aka vacation homes), or investment properties (rental homes). Rates often vary by occupancy type so you’ll need to speak with the various lenders and brokers to make sure that you qualify for what they have posted. Rates may also vary of other reasons including the type of property being financed. For example, interest rates for condos may have pricing adjustments when compared to stand-alone, stick built homes. Be sure to speak with the various home loan providers directly to make sure that you have an accurate idea of pricing for your unique scenario.