What Is A Jumbo Loan? – Jumbo Loan is a loan which is known as a jumbo mortgage, whose amount exceeds the conforming loan limits set by the Federal Housing Finance Agency. It is not like the conventional mortgages as it is not eligible to buy, guaranteed or securitized by Fannie Mae or Freddie Mac.
On a conventional loan, you as a borrower will be limited to borrowing. This threshold limit is called the conforming loan limit. This amount varies between about $400,000 and $700,000 depending on where you live and some other factors.
What Is A Jumbo Loan
Home prices have shot up in some areas of U.S. so the buyers need jumbo loans to finance. It is the one-away loan to buy a luxury home or a high priced home.
If you are a qualified borrower, you can get an amount of $2 million. You don’t need to get a smaller amount of loans to fulfill your financial requirement. This single loan can fulfill your requirements as long as you qualify for the same.
Jumbo Mortgage loan rates?
Previously the interest rate of mortgage loans was higher as compared to the conventional mortgage rates. Recently, the gap between jumbo rates has decreased and Jumbo loans have become more affordable. The lenders offer this loan from 15 to 30 year period for fixed as well as adjustable rates.
There are a large number of reasons you need a jumbo loan the rates have not risen with conventional loan mortgage rates. So it is a great time to get the advantage of Jumbo mortgage financing.
Why do you need to pick a Jumbo mortgage?
A Jumbo mortgage allows the borrower to go outside the Fannie and Freddie limits. Although you can enjoy the competitive interest rate and finance the home of your choice without being restricted by the dollar limit.
Get a large amount of money
There is no doubt that real estate is expensive, especially in Irvine CA. An average home price here is $829,000 as per the National Association of Realtors. So the people have to exhaust their savings to buy a large house.
No need to get multiple loans
The jumbo offers a large amount of money, it removes the need to approach multiple lenders to finance a big house. A single loan simplifies the life of the borrower, as you need to pay monthly installment.
A wide range of options
Just like other mortgages, jumbo offers different types of interest rates suit the borrower. You can select the fixed rate or adjustable rate for your Jumbo mortgage. You can choose according to your ability to make the monthly installment.
Get attractive rates of interest
The credit goes to the federal stimulus package in 2009, where the interest rates for jumbo loans have been dropped.
Thanks to the In Irvine, CA lenders have made it easier for the prospective home buyers to apply for the jumbo loans. It has become simpler to apply for a loan as compared to a few years ago. The process of application for a loan has been streamlined and made borrower-friendly.
The lenders are also offering some attractive offers such as medical insurance, quicker processing, reduced lender fee, etc. But the qualified borrowers are approved and they are the people with high credit scores and lots of assets to their name.
What Is A Jumbo Loan