What is a Jumbo mortgage?
A jumbo loan is a non-conventional loan over $417,000. When a lender offers a mortgage loan, they usually do not keep the mortgage loan for the duration of the time it takes you to pay the loan back and will sell the loan on the secondary market to Fannie Mae or Freddie Mac.
Who should get a Jumbo mortgage?
People who want a shorter loan term while keeping their monthly payments consistent. It’s also attractive to people who plan to stay in the house for at least 5 years and want their mortgage payment spread out so it’s more affordable.
What are the pros and cons of Jumbo mortgages?
- The loan limit is set much higher than conventional loans
- Allows borrowers to mortgage more expensive houses
- Only deal with one lending institution through entire process
- More difficult to qualify for
- Can typically be half a percentage point higher than rates of conventional loans
- Many borrowers end up incurring additional costs
Why Trust Providential?
We’ll save you more money and will offer you low interest rates compared to the competition. If you apply for a Jumbo Home Loan online, you can save cash on your home loan and closing fees.
Providential has helped tens of thousands of borrowers find the perfect home loan option for them. Apply online today!
Other Loan Options:
- 30 Year Fixed Rate Mortgage
- 15 Year Fixed Rate Mortgage
- Reverse Mortgages
- FHA Loans
- ARM Loans
- VA Home Loans
- Interest-Only Loans
- USDA Home Loans
- 203K Loans
- HELOC Loans