A jumbo loan is any mortgage that exceeds conforming loan limits
set by Fannie Mae / Freddie Mac. Therefore, for 2006, any mortgage
loan that exceeds $417,000 is considered a jumbo loan.
How do jumbo mortgages compare to other
types of home purchase
Because you are borrowing more, jumbo loans are considered
a higher-risk. Therefore interest rates associated with these types
of mortgages are going to be slightly higher. Most home loans are
conforming loans, while jumbo loans make up a much smaller part of
the mortgage market.
Why would I apply for a jumbo loan?
As mentioned, the majority of
home loan mortgages issued in the
United States are less than the conforming loan limits established by
Fannie Mae and Freddie Mac. However, in states where the real estate
is very expensive, i.e. New York, California, etc., jumbo loans are
often necessary when buying a home.
Are there any negatives to
applying for a jumbo loan?
Jumbo loans have higher interest rates. Also, if you take a loan
out that is greater that is 80% more than the sale price of the home,
you will have to pay
private mortgage insurance (PMI). If this is the
case, we can help you set-up
dual financing with a second mortgage
that will help you eliminate having to pay PMI.
Why choose Star Loan Services for your jumbo mortgage loan?
Star Loan Services has a wide range of online jumbo loan programs
for all credit types. We can help individuals get approved for bad
credit jumbo loans even if they have recently experienced bankruptcy.
Let us help you choose a loan that is right for your needs and
budget! Simple fill out the free, no obligation online application
instant jumbo loan mortgage consultation.