Jumbo Loans

Hi Alfredo,

Jumbo mortgage is the loan, where the amount of the loan issued, is higher than the general loan limits. Thus, the interest rate on Jumbo loan is higher than the conventional loan interests. This is because, Jumbo loans are high in risk for the lenders. These kind of loans are classified as non-conforming ones, because of the guidelines. The borrower of a Jumbo loan needs to do more paperwork, and go through more investigation as compared to that of the conventional loans.

However, Jumbo loans do not check the past credit of the borrower. The Jumbo loan limits are $417,000. Thus, along with the interest rates, the down payment charged is higher too.

These mortgages are generally applied for to buy luxury residences. However, as price of houses rose, more people have started applying for the Jumbo loans.

Hope this helps.

Regards,

Aaron

Wow I have been on here a while and never knew that. Goes to show you that there is always new knowledge out there.

Hi Aaron, thanks for the information on jumbo mortgages.

Hi Aaron,
how can i get jumbo mortgages, can i apply debt consolidation for jumbo loan.

Hi kimsmith,

You can get jumbo mortgages from lenders. However to qualify for a jumbo mortgage you should be able to make a down payment of at least 20% of a purchase, and you need to document your income. In addition you need to have a good credit score, above 680. Jumbo mortgages come with higher rates than conventional loans.

Thanks,

Aaron