What Is A Jumbo Loan?

A jumbo loan refers to a mortgage that surpasses the loan limits set for a specific county. Because these loans are not supported by Fannie Mae or Freddie Mac, they typically come with more rigorous underwriting standards and are instead financed by banks or private investors. Stricter criteria often entail lower allowable debt-to-income ratios, larger required down payments and reserves, as well as heightened credit score expectations. Jumbo loans can be used to buy a primary residence, an investment property, or a secondary home.

Fixed Rate Jumbo Loan Options

With a fixed rate jumbo mortgage, you can avoid concerns about fluctuating interest rates, allowing for steady monthly payments that facilitate budgeting and provide peace of mind.

Adjustable Rate Jumbo Loan Options

If you expect your income or property valuation to rise significantly in the coming years, plan to live in your home for a short time, or wish to reduce your monthly expenses considerably, a jumbo adjustable-rate mortgage with terms of 3, 5, or 7 years could be suitable for you.