Jumbo Loans exceed the maximum loan amounts established by Fannie Mae (FNMA) and Freddie Mac (FHLMC). Rates on jumbo loans are typically higher than conforming loans. Jumbo Loans are typically used to buy more expensive homes and high-end custom construction homes. However, Jumbo Loans are common in cities where real estate values are higher, such as in King County, Washington.
What is a Jumbo Mortgage?
Basically, if you need a loan amount that is higher than $424,100 or, in some higher priced areas, $636,150 you need a jumbo mortgage. More specifically, a jumbo mortgage is a loan for an amount above the conforming limits set by Fannie Mae and Freddie Mac. The loan limit is set at $424,100 in most parts of the US. However, in high-cost areas, the limit can be as much as $636,150. For loan limits in your area or to shop and compare current jumbo mortgage rates, please contact Niles Home Loans with Finance of America Mortgage LLC at (503) 810-4873. We look forward to hearing from you!