Jumbo Mortgage

A Jumbo Mortgage is your standard mortgage loan for loans over $417,000.00.

Jumbo loans tend to be harder to qualify for as the risk is higher due to the large loan amount.  Many lenders require 20% down for all Jumbo loans.

The three most popular Jumbo Mortgages are the 30 year fixed rate mortgage, the 15 year fixed rate mortgage and an adjustable rate mortgage (ARM.)

The Jumbo 30 year fixed rate mortgage is the most popular loan.  It provides a stable, fixed rate for 30 years and the loan is amortized for the same period of time.

The Jumbo 15 year fixed rate mortgage is a more conservative loan, normally used by move-up buyers.  The rate is fixed for 15 years and the loan is amortized for the same period of time.  The payment is higher than the 30 year fixed rate mortgage because of the shorter amortization schedule.

The Jumbo adjustable rate mortgage or Jumbo ARM is generally utilized by the short term buyer.  Someone who will be in the home for less than five years.  There are several ARM's available such as a 1/1 ARM, 3/1 ARM, 5/1 ARM and a 7/1 ARM.  The first number is the number of years the ARM is fixed and the second number is the how often the ARM adjust after the fixed period i.e. a 7/1 ARM is fixed for 7 years and adjustable annually afterwards.

For more information on Jumbo Mortgages, contact us at your convenience.

Compare rates on a Jumbo Mortgage.