You deserve a good deal on a Jumbo Home Loan!
In some real estate markets, a house in the $400,000 range is little more than a starter home. So why is it that a home loan in the mid $400s is considered a Jumbo Mortgage Loan?
Good question. While the rest of us may see the term “jumbo” as relative, Fannie Mae and Freddie Mac, two government sponsored mortgage entities, have definite opinions. Each year, a new “conforming loan limit” is published by these organizations.
The conforming loan limit is the maximum loan size eligible for purchase by either Fannie Mae or Freddie Mac, who purchase the underlying securities from mortgage originators. Those funds are then reinvested in new mortgages, and the flow-of-funds cycle continues.
The conforming loan limit, or “Jumbo Loan amount” is set every January. This year, the limit for single-family homes and condominiums is $417,000. Mortgages USA Loans conforming loan limit has also been raised to $417,000.
When a loan amount is higher than the conforming limit, it becomes a Jumbo Loan – or non-conforming loan – with slightly higher interest rates.
Jumbo Loans, compared with historically low mortgage rates, can bring greater flexibility for some home buyers to purchase the house they want and make the payment they want.
With Jumbo Loans, you do have options. Jumbo loans can be 30-year fixed, adjustable rate mortgages, or FHA loans with up to 97% financing and new higher loan limits. Talk with your financial advisor about your current financial situation, and your goals, and they’ll work with you to find the best choice based on your needs.
With interest rates so low, consumer interest in Jumbo Loans is very high. If you are interested in finding out about securing a high end home without the jumbo mortgage rate, or getting your Jumbo Loan with a low (or no) down payment, talk to a mortgage expert at Mortgages USA by calling (800) 600-MUSA.
MUSA proudly serving Dallas, Fort Worth, Austin, San Antonio, Houston and their Texas Metro Areas
Copyright ©2010 Mortgages USA Bank. All rights reserved. Privacy Policy | Terms & Conditions | Disclosures | Sitemap
