These loans
do not conform to the guidelines established by Fannie
Mae or Freddie Mac or exceeds the conventional loan
limit is called a Jumbo loan. These loan amounts can
go up to 2 million dollars. Loan to value limits for
Jumbo loans range from 50% to 95% depending on the
loan amount.
With this
jumbo loan, borrowers can maximize their cash flow
by making fixed rate interest only payments during
the first five years of the 30 year jumbo loan. By
freeing up their funds this loan program allows borrowers
to direct their savings to short term investments
or other interests. This can add up to substantial
monthly savings and increased purchasing power.
Cash Out
for Home Improvements or Debt Consolidation, etc.
Loan amounts
range from $288,000-$2,000,000.
Fixed Rate
- Fixed rate mortgage in a variety of terms up to
$2,000,000 loan amount.
One Year
Treasury ARM - One year adjustable rate mortgage that
adjusts annually for loan amounts to $3,000,000.
3/1 Treasury
ARM - Adjustable rate mortgage for loan amounts to
$2,000,000 that has a fixed rate for the first three
years and adjusts annually afterward.
5/1 Treasury
ARM - Adjustable rate mortgage for loan amounts to
$2,000,000 that has a fixed rate for the first five
years and adjusts annually afterward.
7/1 Treasury
ARM - Adjustable rate mortgage for loan amounts to
$2,000,000 that has a fixed rate for the first seven
years and adjusts annually afterward.
The interest
rate on our Jumbo Mortgages are nearly as low as our
conventional Mortgages. Another way to get the best
rate is to consider an Adjustable Rate Jumbo Mortgage.
These are frequently much lower, depending on short
term rates.
Home loans
are classified in a wide variety of ways. They can
be classified by the amount loaned, whether the interest
rate can be adjusted or not, the length of the payback
period and so on. A fairly common and simple term
to understand is the jumbo loan.
A jumbo
loan is a loan that exceeds the maximum dollar amount
guidelines set by FANNIE MAE, for a single family
loan limit. Effective January 1st, 2005, this limit
is $359,650 in all states except AK and HI. Most lenders
use the Fannie may guide when underwriting loans over
these set limits.
Given the
higher risk from the perspective of the lender, you
can expect to be treated a bit differently. In this
case, lenders are going to charge higher interest
rates than you would be able to get with a conforming
loan. Before you panic, keep in mind we are talking
about a quarter of a point in interest. For example,
a conforming loan for $300,000 may have an interest
rate of 5.5 percent whereas the same borrower will
have to pay 5.75 percent if they borrow $800,000
