Jumbo Loans aka a Jumbo Mortgage

What is a Jumbo Loan?

A jumbo loan is a non-conventional loan that agencies such as FHLMC and FNMA, will not buy and trade due to the loans cost. When lender offers a mortgage loan, they normally do not keep the mortgage for the duration of the loan. They sell the loan on the secondary market to agencies such as FHLMC and FNMA.

Jumbo loans were designed to help people with high incomes afford homes in higher price range. Whether it be a luxury home or a smaller home in a higher end neighborhood. With home prices rising more middle-income Americans have turned to Jumbo loans to purchase their dream homes.  

a.k.a. "Jumbo Mortgage"

The pro's of a Jumbo Loan

- You need the money, you get the money

- No need for multiple loans

- Variety of different Jumbo loan programs

- Dropping interest rates

- Easier to apply for

- Refinancing can bring huge savings

- Special offers from banks & lenders

The con's of Jumbo Loan

- HIGHER interest rates

- More difficult to get

The bottom line is that if you are considering a jumbo mortgage loan, DO YOUR HOMEWORK!

As with any major purchase, weigh your options, both the pros and cons to ensure you make a well informed decision for your loan.