What Is A Jumbo Mortgage

What is​ a​ Jumbo Mortgage?
A jumbo mortgage means a​ larger than normal size mortgage .​
While getting a​ jumbo size anything usually means getting a​ good deal - especially when it​ comes to​ hamburgers and fries - it​ may not mean the​ best deal in​ the​ case of​ mortgages,​ however .​
Here are a​ few things you​ need to​ know about jumbo mortgages.
The largest mortgage lenders in​ the​ United States - Freddie Mac and Fannie Mae,​ determine mortgage sizes .​
They determine what is​ to​ be considered the​ standard size each year .​
Anything above that amount is​ considered to​ be what is​ called a​ jumbo mortgage .​
Currently,​ as​ of​ 2018,​ the​ amount is​ set at​ $417,​000 .​
This amount is​ higher for the​ Hawaiian Islands,​ Alaska,​ and in​ the​ U.S .​
Virgin Islands .​
A jumbo mortgage,​ also referred to​ as​ a​ non-conventional,​ or​ non-standard mortgage,​ also comes with jumbo interest rates .​
In other words,​ the​ amount of​ interest that you​ pay for your larger than usual mortgage also comes with higher interest .​
Part of​ the​ reason for this is​ because the​ lenders believe that they are at​ a​ higher risk for possible loss .​
Like any other type of​ loan,​ though,​ the​ interest amounts do vary from one location to​ another.
For a​ larger home,​ jumbo mortgages may be just about the​ only option you​ have,​ but there are still ways around it​ if​ the​ home is​ not priced too high .​
Some companies offer a​ solution in​ the​ form of​ a​ package mortgage deal - getting a​ first and second mortgage at​ the​ same time .​
By financing the​ first mortgage at​ 80%,​ you​ can then get financing on​ a​ second mortgage to​ cover the​ balance .​
By going this route,​ you​ may also be able to​ avoid having to​ pay for private mortgage insurance,​ too .​
A jumbo mortgage is​ available in​ either a​ fixed rate mortgage or​ as​ an​ adjustable rate mortgage .​
You do need,​ however,​ to​ pay attention to​ the​ economy at​ the​ time in​ order to​ know which way is​ best at​ the​ time .​
Both have their advantages,​ and both have their drawbacks depending on​ which way the​ economy is​ going .​
Some companies are even offering no doc loans on​ their jumbo mortgages .​
Typically this type of​ mortgage comes with higher interest but some mortgage companies declare that their rates are the​ same for doc and no doc alike .​
Other forms may be developing so you​ will need to​ do some research to​ see if​ another form of​ jumbo mortgage suits your needs a​ little better .​
As with any loan,​ you​ need to​ do some comparison shopping in​ order to​ find the​ best deal .​
This means learning the​ terms that may be involved .​
The easiest way is​ to​ go online and go to​ a​ broker website where you​ can get several mortgage quotes with one application .​
Separate the​ principal from the​ interest and then compare that with the​ other fees that apply .​
Before long you​ will have the​ best deal .​
You also may want to​ investigate the​ company some,​ too,​ if​ you​ have not heard of​ them before.

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