Jumbo Morgage Rates - Current Jumbo Amounts, Loan Limits & Definition
"Keeping Your Best Interests At Heart"
Interest Rates Guaranteed Less Than All major Banks in the Nation
One low jumbo morgage quote that suits your needs No hassles or obligations - just great service!
Fees Explained I
Points Explained I
Common Terms I
Glossary I
Local Quote I
Beat The Banks Program
"To say that I appreciate you and your company's help would be a huge understatement..."
It should also be noted that there has been some movement in the direction of increasing the conforming loan limit to an amount well above the current $417,000. This is due to the dramatic increase in home values over the past decade. The increase in home values has created populous regions of the country wherein prospective homeowners or borrowers don't have any access to Government Loans or the low rates provided by Fannie Mae backed products on account of median home values being well above the current conforming limits.
Other Important Morgage Terms
Loan Application Fee - This is the Fee paid by prospective buyer to lender when applying for a morgage.
Loan Origination Fee - This is a fee charged by a broker or lender for initiating a morgage and is usually expressed as a percentage of the loan (i.e. percentage 'points').
Lock, Lock In or Rate Lock – The written agreement in which the lender guarantees the borrower a specified rate, provided the mortgage closes within a given time period.
Morgage Margin - A constant “spread” (or amount) which, when added to an Index, establishes a borrower's interest rate in an Adjustable Rate Mortgage.
Maturity – The period until the last payment is due. This is usually identical to the 'term' of the loan.
Mortgage Insurance - Insurance purchased by a borrower to cover the lender's risk on loans with a 'Loan to Value' of greater than 80%.
MIP (Morgage Insurance Premium) - Insurance purchased by borrower to insure against default on government morgages (FHA or VA).
"To say that I appreciate you and your company's help would be a huge understatement..."
Jumbo Morgage Definition: Amounts + Limits
Jumbo Morgage is a term that specifically refers to any loan amount that is above the conforming loan limit as set each year by Fannie Mae (this is why the term is often used interchangeably with 'Non-Conforming Mortgage'). So presently this means that any loan of an amount greater than $417,000 can be considered a Jumbo Morgage. Since Fannie Mae is the largest buyer of morgages on the 'Secondary Market' their refusal to purchase any loans above $417,000 has a serious impact on the demand for such loans. The result is that such loans have higher interest rates than 'conforming' loans. This is simply because, with out Fannie Mae and Freddie Mac competing to buy these jumbo mortgages, there is less demand for them in the secondary market. To make these investments more attractive to potential purchasers in the secondary market the interest rates on these loans are increased.It should also be noted that there has been some movement in the direction of increasing the conforming loan limit to an amount well above the current $417,000. This is due to the dramatic increase in home values over the past decade. The increase in home values has created populous regions of the country wherein prospective homeowners or borrowers don't have any access to Government Loans or the low rates provided by Fannie Mae backed products on account of median home values being well above the current conforming limits.
Other Important Morgage Terms
Loan Application Fee - This is the Fee paid by prospective buyer to lender when applying for a morgage.
Loan Origination Fee - This is a fee charged by a broker or lender for initiating a morgage and is usually expressed as a percentage of the loan (i.e. percentage 'points').
Lock, Lock In or Rate Lock – The written agreement in which the lender guarantees the borrower a specified rate, provided the mortgage closes within a given time period.
Morgage Margin - A constant “spread” (or amount) which, when added to an Index, establishes a borrower's interest rate in an Adjustable Rate Mortgage.
Maturity – The period until the last payment is due. This is usually identical to the 'term' of the loan.
Mortgage Insurance - Insurance purchased by a borrower to cover the lender's risk on loans with a 'Loan to Value' of greater than 80%.
MIP (Morgage Insurance Premium) - Insurance purchased by borrower to insure against default on government morgages (FHA or VA).