Jumbo loans are available in a variety of flexible loan options including fixed or adjustable-rate mortgages. Additionally, since Jumbo Loans don’t have the restrictions of conforming loans, you’ll be able to:
Additionally, if you choose a fixed-rate Jumbo Loan, you’ll enjoy the peace of mind that comes with knowing that your mortgage payment will not change throughout the life of the loan.
Jumbo Loans are characterized by the fact that the size of this loan exceeds the conforming loan limit. Because they exceed this limit, unlike an FHA Loan, Jumbo Loans are not backed by the federal government, which makes them more risky for lenders.
This means that Jumbo Loans are generally more difficult to qualify for compared to conventional mortgages. Additionally, to qualify for a Jumbo Loan you’ll generally need:
All that said, other than the different qualification requirements and the larger loan amounts, Jumbo Loans work much like a conventional mortgage.
With a Jumbo Loan, you’ll make a down payment, cover closing costs, and then start making your monthly payments. Depending on a variety of factors, you may or may not need to pay PMI.
In any case, the large loan amounts of Jumbo Loans will ensure you’re not held back from purchasing the home of your dreams.