Scott Kepler
NMLS #833792
(813) 444-8537
scott@scottkepler.com

Jumbo Loans

Are you looking to buy a larger, more luxurious abode? A jumbo mortgage might be right for you.

What is a jumbo mortgage?

A jumbo mortgage is a home loan 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 can increase to $625,500 in the highest-cost areas.)

Out of 3300, counties in United states only 100 counties are eligible for the high-cost limit of $625,500 and in an addition to 100 counties further 92 counties are have loan limits are greater than $417,000 but less than $625,500.

In the United States, a jumbo mortgage is a mortgage with a loan amount above the industry-standard definition of conventional conforming loan limits. This standard is set by the two largest secondary market lenders, Fannie Mae and Freddie Mac.

Loans above the conforming limits may be offered by seller servicers of these wholesale institutions, as well as Wall Street conduits who provide warehouse financing for mortgage lenders. The loan amounts reflect average loan sizes nationwide. Jumbo mortgages apply when agency (FNMA and FHLMC) limits don’t cover the full loan amount. Fannie Mae (FNMA) and Freddie Mac (FHLMC) are large agencies that purchase the bulk of residential mortgages in the U.S. They set a limit on the maximum dollar value of any mortgage they will purchase from an individual lender.

As of 2006, the limit is $417,000, or $625,500 in Alaska, Hawaii, Guam, and the U.S. Virgin Islands. Other large investors, such as insurance companies and banks, step in to fill the need, with maximum mortgage amounts going to the $1 million or $2 million range. A loan in excess of $650,000 is referred to as a super jumbo mortgage. The average interest rates on jumbo mortgages are typically greater than is normal for conforming mortgages, and vary depending on property types and mortgage amount.

Mortgage loan limits were reduced in the country’s higher-priced housing markets Oct. 1, 2011.

In most (but not all) U.S. counties, any mortgage of more than $417,000 is a jumbo loan — and jumbo mortgages have higher interest rates than smaller loans. In counties with high home prices, borrowers are able to get mortgages for more than $417,000 without paying the higher jumbo interest rates.

Who Should Get A Jumbo Mortgage?

If you are able to afford a more expensive home, but haven’t saved up enough money to bring the loan down to conforming limits, a jumbo loan is a great option for you.

If you’re looking to find your “forever” home, and know that as time goes on your income will increase, a Jumbo loan could be an affordable home loan option for you. This may be a good way to bypass the “starter home” and prevent you and your family from moving later to a bigger home.

Perhaps you’ve found the perfect home, but it just happens to be in a neighborhood where all the homes are highly priced. A jumbo loan may be the only option you have in order to buy a home it, due to the high-value real estate in the area.

Things You Should Know About a Jumbo Loan

A jumbo mortgage is a great way to rapidly build you credit. By making your payments on time, you’ll quickly see your credit score improve. Due to the large amount of a jumbo loan, it may be more expensive to refinance a jumbo mortgage, mainly because of higher closing costs.

We are a customer service oriented company serving the homeowners with sincerity and devotion. Our straightforward business model means a quick mortgage process, Fast Closing, right loan products and lowest interest rates available to our customers. Talk to one of our mortgage professional to see if this form of home loan refinancing is right for you.

Ready to start now? Visit our online application and you can get your refinance going immediately.

What Loan Types Are Available For Jumbo Loans?

  • 30-Year Fixed Rate Loan
  • 15- Year fixed Rate Loan
  • Adjustable-Rate Loan
  • Interest Only
 
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