Web
Analytics
Living Flipside Online Resources and News
  Break Down. Rebuild. Live Well.
The Online Resource for Rebuilding and Living Well with a Shattered Background.
Get the latest news, resources, education, and housing information.


Loans & Finances

Jumbo Loans Explained

by | | Last Updated On September 25, 2017

In some 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 $400’s is considered a Jumbo 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.

What is the Conforming Loan Limit?

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 is set every January. The 2005 limit for single-family homes and condominiums is $359,650. However, some lenders have raised their conforming loan limits to save their clients money. Quicken Loans conforming loan limit has been raised to $400,000.

When a Loan Becomes a Jumbo

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, combined 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.

Jumbo Loans can bring greater flexibility.

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 MORTGAGEPIG.







Get FREE custom quotes, information, and advice.


COMMENT ON THIS ARTICLE



















Related News and Articles
Four Steps to Refinance After Bankruptcy Four Steps to Refinance After Bankruptcy

Reverse Mortgages: Stay Home, Make Money & What is a Reverse Mortgage? Reverse Mortgages: Stay Home, Make Money & What is a Reverse Mortgage?

Student Loan Guide and Tips Student Loan Guide and Tips

Evictions, Foreclosures On Hold in Harvey’s Wake Evictions, Foreclosures On Hold in Harvey’s Wake

An Overview of a Quit Claim Deed An Overview of a Quit Claim Deed

Your First Step in Applying for a Loan Your First Step in Applying for a Loan

5 Tips on Preparing for Getting a Mortgage

Black or Hispanic a Higher income doesn't help getting a mortgage Black or Hispanic a Higher income doesn't help getting a mortgage



Web Statistics