A jumbo mortgage is a home loan of which value exceeds conventional home loan limits which are set by Fannie Mae and Freddie Mac.
Typically, jumbo mortgages are used to finance the purchase of luxury, high-end properties, homes or condos. The jumbo mortgage, conforming limit in “high-cost” areas is currently $625,500. Jumbo mortgages also subject lenders to significantly higher risk due to the fact that if a jumbo mortgage loan defaults it would be harder to sell a luxury residence quickly for full price.
With this in mind, the interest rate charged on a jumbo mortgage loan is generally higher than a conforming home loan and, depending on which lending you chose, the rate can fluctuate significantly.
At Security America Mortgage, our team of jumbo mortgage specialists are experts in all types of jumbo mortgages and we offer extremely competitive, market rates.