interest only mortgages – Understanding Jumbo Mortgages
Understanding Jumbo Mortgages
Free Online Articles Directory
Why Submit Articles?
Top Authors
Top Articles
FAQ
ABAnswers
Publish Article
0 && $.browser.msie ) {
var ie_version = parseInt($.browser.version);
if(ie_version Login
Login via
Register
Hello
My Home
Sign Out
Email
Password
Remember me?
Lost Password?
Home Page > Business > Understanding Jumbo Mortgages
Understanding Jumbo Mortgages
Posted: Sep 07, 2007 |Comments: 0
| Views: 352 |
]]>
A jumbo mortgages is a home loan that exceeds the limits set by Fannie
Mae and Freddie Mac.
How are jumbo loans different?
What differentiates jumbo mortgage loans is the loan amount. At present, loan amounts that are higher than 7,000 are usually deemed jumbo mortgages. This determination is made by comparing industry standards for average housing loans as governed by the two biggest secondary mortgage lenders, Fannie Mae and Freddie Mac.
Fannie Mae and Freddie Mac set industry standards for ‘conforming loans’; Home loans beyond those maximums are regarded as jumbo mortgages. These two agencies cap the dollar figure for loans that they will buy (that’s where the 7,000 figure comes from). Larger loan amounts are funded by other investors such as banks and insurance companies. Note that the dollar figure set to qualify jumbo mortgages differs by locale, so the limit is higher in Hawaii and Alaska (and in some other states). In the majority of the U.S., jumbo mortgages are those larger than 7K.
Available Terms – 15 Year Fixed, 30 Year Fixed, or Variable 30 Year
Jumbo Mortgage
The terms for jumbo mortgages vary similarly to other types of housing loans. Buyers can choose between variable rates, like 3/1 or 5/1 ARMs, for a 15-30 year jumbo mortgage, or a 15 or 30 year fixed jumbo mortgagerate.
Whether a 15 or 30 year fixed jumbo mortgage or an adjustable rate is best for you will depend on your plans and situation.
A 30 year fixed jumbo mortgage is better for those whole plan to own the home for a very long time. With this type of mortgage, the rate will not go up but it will never go down, either – it stays the same for the life of the loan. This is good because the payment is predictable, and cannot rise sharply if interest rates do. On the downside, the 30 year fixed jumbo mortgage rate is higher since lenders know they can never charge more than the original rate.
The lowest jumbo mortgage rate is usually an adjustable 30 year jumbo mortgage rate. Lenders understand their potential to benefit from increases in rates over time, so they are willing to lend at a lower rate in the beginning. Although, the lower rate won’t last. A variable 30 year jumbo mortgage rate will be fixed for 3 to 5 years, and then will adjust annually according to an index. Even small increases could mean significantly larger monthly mortgage payments.
Going with an adjustable 30 year jumbo mortgage rate works well when a buyer plans to move within the 3 to 5 year fixed period. For a buyer more concerned with smaller initial payments, or who will likely refinance in the near future, the variable 30 year jumbo mortgage rate is better than the 30 year fixed jumbo mortgage. Why pay the higher fixed rate when the buyer knows this isn’t their long-term plan?
All jumbo mortgage products – 15 year, variable 30 year, or the 30 year fixed jumbo mortgage – have their benefits. A trustworthy mortgage lender with experience financing jumbo mortgages is a buyer’s best resource for determining which product is right for them.
Retrieved from “http://www.articlesbase.com/business-articles/understanding-jumbo-mortgages-210513.html”
(ArticlesBase SC #210513)
Watch your traffic increase just by submitting articles with us, click here to get started.
Liked this article? Click here to publish it on your website or blog, it’s free and easy!
1st American Mortgage -
About the Author:
This article is written by J.B. of 1st American Mortgage and Loan, LLC, a Colorado mortgage company.
]]>
Questions and Answers
Ask our experts your Business related questions here…
Ask
200 Characters left
What are current jumbo mortgage rates ?
How to lower the mortgage rate for a jumbo loan without defaulting or paying cash to lower the loan below 9,000
What are current fixed mortgage rates?
Rate this Article
1
2
3
4
5
vote(s)
0 vote(s)
Feedback
Re-Publish
0) {
ch_selected = Math.floor(Math.random()*ch_queries.length);
if(ch_selected == ch_queries.length) ch_selected–;
ch_query = ch_queries[ch_selected];
}
}catch(e){
ch_query = document.title;
}
]]>
Source: http://www.articlesbase.com/business-articles/understanding-jumbo-mortgages-210513.html
Article Tags:
jumbo mortgages, fixed jumbo mortgage, fixed mortgage
Related Videos
Related Articles
Latest Business Articles
More from 1st American Mortgage
Learn about Mortgage Rates and Points
Video explains with examples why mortgage points matter. Points are what actually move each business day since the actual rate is always available. It’s just a matter of how much it will cost you to obtain the rate. The video tutorial also publicizes a new daily real-time mortgage rate alert service for home buyers and those refinancing their current mortgage. (02:19)
Home Loan Mortgage Choices for your Next Home
Know the mortgage home loan choices before you get your next mortgage loan (04:20)
How to Lock Your Mortgage Rate Before Lender Hikes It
Video explains how to lock a fixed rate mortgage on a home loan currently in the application process before you are caught by surprise when a sudden home loan rate increase takes place. The video tutorial also introduces a new daily real-time mortgage rate alert service for home buyers and those refinancing their current mortgage. (01:48)
Your Mortgage Decision And Discipline
Jeff Thomas, mortgage advisor, explains the steps you have to go through when buying a house, like if your mortgage decision relates to discipline (01:04)
Your Mortgage Decision And Protection
Jeff Thomas, mortgage advisor, explains the steps you have to go through when buying a house, like if your mortgage decision relates to protection (01:30)
How to Get Mortgage Loan Info – get quicken mortgage loans
There are a body of different types of mortgages offered by lenders, but what distinguishes a mortgage loan from other types of loans?The most important aspect of a mortgage loan is the collateral that backs it up. The title of the silver is held by the lender besides the native itself “secures” the loan.
By:
Dolly Guptal
Finance>
Mortgagel
Jun 26, 2010
Government Mortgage Versus Conventional Home Loans – Mortgage Refinancing Differences
This article summarizes the differences between conventional and government loans for first-time buyers, homeowners have mortgage refinancing, and those relating to cash-equity consolidation loans, debt consolidation or home improvements with home equity loans (second mortgages).
By:
kadinblogl
Finance>
Mortgagel
Sep 08, 2010
What to Expect From a Jumbo Mortgage Loan
A jumbo mortgage loan is a loan taken for property that is high-priced.. In Colorado, as in most of the U.S., a jumbo mortgage loan is any mortgage that exceeds 7,000 – the limit set by Fannie Mae and Freddie Mac for conforming loans.
By:
1st American Mortgagel
Careersl
Sep 14, 2007
lViews: 358
What is Jumbo Fixed Mortgage Rate
Still many people are confused about what the call jumbo fixed mortgage rate or jumbo mortgage rate. In the past, moneylenders, and the “lords” (Europe 16 to 18th century) are presented home mortgage loans to “poor” people, often pheasant and labor.
By:
Coman Goodsonl
Finance>
Personal Financel
Jan 11, 2010
How to obtain a jumbo mortgage rate
This article discusses how individuals can obtain a jumbo mortgage rate and how they can obtain one to purchase a new home.
By:
ryan jacobl
Finance>
Mortgagel
Apr 10, 2011
Tablecloths and Wedding Planning
Wedding planning, through invitation card and wedding linen selection is a way to participate in one last hurrah with your entire family before a family member moves off to start a family all their own.
By:
Richard A. Manfredil
Businessl
Jul 28, 2011
How managed print services help all businesses
Just about every business can benefit hugely from the reduced wasted and large savings offered by managed print services, with companies across all industries able to enjoy a more effective management of print resources.
By:
Bob Jonesl
Businessl
Jul 28, 2011
Why Quality Check is important in selecting distributor of cell phones?
Your business depends on the product you sell in the market and product varies with quality standards in the marketplace. The product you sell will generate good business and revenue if it’s quality dimensions are equally measured.
By:
Zeeshan Daniell
Businessl
Jul 28, 2011
The Advantages of Hiring a Coach over the Internet
The online way to hire a coach is the best available way to hire a coach; you should go through the online way, whenever you want to hire a coach, next time.
By:
D.K.Pandeyl
Businessl
Jul 28, 2011
Real Estate in Buenos Aires Offers Numerous Choices
Searching for the right home in Buenos Aires can be a good move right now, whether you are looking for a primary residence or you are considering purchasing a vacation home. Real estate in Buenos Aires represents an incredible value while also offering the opportunity to soak up in the fabulous Argentine culture. Many people originally visit Buenos Aires on holiday and find themselves falling in love with the charming neighbourhoods, spacious tree-lined boulevards, spectacular architecture and t
By:
Lance Petresl
Businessl
Jul 28, 2011
Comparing Colorado Jumbo and Conforming Mortgages
There are differences between a jumbo Colorado mortgage and a conforming Colorado mortgage and learning what those are will inform you about which Denver mortgage is the best for you.
By:
1st American Mortgagel
Businessl
Apr 13, 2008
How to Find Honest Advice About Colorado Mortgages
It’s safe to say there are many places to find a deal for a Denver mortgage or Colorado mortgages these days. But the mortgage crisis has made things a little more complex. It’s not just about finding the best deal, but finding someone to work with who will give you honest advice and help you get into a mortgage that you can afford.
By:
1st American Mortgagel
Financel
Apr 01, 2008
Getting Help With the Tom Martino Troubleshooter Mortgage
Tom Martino has been an advocate of consumer rights for more than 30 years. Now, Tom Martino mortgage help is being offered trough the Tom Martino troubleshooter mortgage referral system
By:
1st American Mortgagel
Businessl
Jan 14, 2008
lViews: 2,982
lComments: 6
Denver Mortgages: More Than the Best Rate
Ask Denver mortgage loan providers what would-be borrowers want to know and the answer is simple. Those who are shopping for mortgage loans in Denver want to know what their rate would be for a Denver mortgage.
By:
1st American Mortgagel
Financel
Jan 10, 2008
lViews: 133
What are Mortgage Rates Like in Colorado? are They Different?
Colorado mortgage shopper may wonder, while they are shopping around for a loan, if there are different mortgage rates in the state – higher or lower than the rest of the nation. The basic answer is no, when you compare rates for mortgages in Colorado to elsewhere.
By:
1st American Mortgagel
Finance>
Mortgagel
Dec 21, 2007
Add new Comment
Your Name: *
Your Email:
Comment Body: *
Verification code:*
* Required fields
Submit
Your Articles Here
It’s Free and easy
Sign Up Today
Author Navigation
My Home
Publish Article
View/Edit Articles
View/Edit Q&A
Edit your Account
Manage Authors
Statistics Page
Personal RSS Builder
My Home
Edit your Account
Update Profile
View/Edit Q&A
Publish Article
Author Box
1st American Mortgage has 9 articles online
Contact Author
Subscribe to RSS
Print article
Send to friend
Re-Publish article
Articles Categories
All Categories
Advertising
Arts & Entertainment
Automotive
Beauty
Business
Careers
Computers
Education
Finance
Food and Beverage
Health
Hobbies
Home and Family
Home Improvement
Internet
Law
Marketing
News and Society
Relationships
Self Improvement
Shopping
Spirituality
Sports and Fitness
Technology
Travel
Writing
Business
Agriculture
Ask an Expert
Business Ideas
Business Opportunities
Corporate
Customer Service
Entrepreneurship
Ethics
Franchise
Fundraising
Home Business
Human Resources
Industrial
International Business
Leadership
Management
Negotiation
Networking
Non Profit Organizations
Online Business
Organizational
Outsourcing
Presentation
Project Management
Public Company
Public Relations
Sales
Six Sigma
Small Business
Strategic Planning
Team Building
Training
]]>
Need Help?
Contact Us
FAQ
Submit Articles
Editorial Guidelines
Blog
Site Links
Recent Articles
Top Authors
Top Articles
Find Articles
Site Map
Mobile Version
Webmasters
RSS Builder
RSS
Link to Us
Business Info
Advertising
Use of this web site constitutes acceptance of the Terms Of Use and Privacy Policy | User published content is licensed under a Creative Commons License.
Copyright © 2005-2011 Free Articles by ArticlesBase.com, All rights reserved.
This article is written by J.B. of 1st American Mortgage and Loan, LLC, a Colorado mortgage company.
Related Interest Only Mortgages Articles
