Jumbo mortgages are mortgage loans that are of a larger size as compared to standard mortgage loans. Though a jumbo sized meal is often very appealing when it applies to a mortgage, there are more factors that need to be considered such as that for those people that have been looking around for a mortgage loan that is in excess of four hundred and seventeen thousand dollars, only a jumbo mortgage will provide them with that kind of money.
Loan Limits Set By Freddie Mac And Fannie Mae
In fact, a jumbo mortgage is a mortgage that is higher in value than this 417,000 dollar loan limit set out by Freddie Mac and Fannie Mae. This means that Jumbo mortgage rates are also going to be large sized and the investors that will be offering Jumbo mortgages too will be a different set of players. In fact, jumbo mortgage rates are going to be a quarter to half point more than the interest charged on conforming loans (loans that are of less value than the four hundred and seventeen thousand limit set by Fannie Mae and Freddie Mac.)
So, in case the mortgage rate for a conforming loan stands at six percent then the jumbo mortgage rate for your Jumbo mortgage loan would be anything from approximately 6.25 to 6.50 percent. Given the fact that jumbo mortgage rate are generally higher it therefore stands to reason that it would be right to assume that such mortgages are an appropriate option only to borrowers that are willing to pay a higher rate of interest.
Jumbo mortgage rates are applicable on loan limits that are in excess of the loan limit set by what is called the federal national mortgage association. So, a jumbo mortgage is ideal for a person requiring about three hundred and twenty-two thousand for purchase of a one family home. This amount of loan exceeds the limits set by Freddie Mac and Fannie Mae and is therefore only available in the form of a Jumbo mortgage loan.
Also, jumbo mortgage rate are influenced by a number of factors including the lender s view of the borrower s current credit report, current credit score as well as the borrower s work history and debt to income ratio. All these factors help mortgage lenders assess the viability of offering a mortgage loan, especially the jumbo mortgage loan that requires that the borrower has to pay a higher jumbo mortgage rate.
When it concerns home mortgage refinance rates, seldom is it possible to get rates that are as low as was applicable with the original mortgage. However, if you research your options well chances are that you should be able to get some pretty attractive deals.