Especially in areas where housing values are quite high, jumbo loans are a common part of the financing process. Many people have heard the term but don’t quite understand what it means or in what situation you would need to obtain one. While jumbo loans are often used for high-value homes, inflated market prices in some areas mean that even a modest home can sometimes require one. What Is A Jumbo Loan? A jumbo loan is a mortgage loan for an amount that is in excess of what is considered a conventional loan. The maximum amount for a conventional loan is determined by the government-sponsored agencies Fannie Mae and Freddie Mac. That limit depends on the area of the country in which you live. In most parts of the nation, the conventional loan limit is set at $417,000. The limit in high cost areas has been changed a few times over the years. As of October 2011 it is set at $625,500. Any mortgage that is higher than these amounts is considered to be a jumbo loan. Jumbo Loan Rates And Lenders With the housing market having lost some ground, jumbo loans are not as popular or as common as […]
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