Jumbo or non-conforming mortgages have a higher loan amount than conventional, FHA and VA guidelines allow. These loans make up for the deficiencies created by specific county loan limits. Jumbo or non-conforming mortgages are limited in their overall loan to value ratio and loan amount.


Guidelines and Parameters

A jumbo loan takes over for the higher of the conforming or high balance conforming loan limit based on county loan limit availability.  Currently jumbo loans are more restrictive for the borrower’s qualifications requiring more money down, higher credit scores and a lower debt to income ratio in some instances.

Who Is It Right For?

Who Is It Right For?

Fixed Rate High Balance Mortgages are ideal for homebuyers who:
  • Are buying a property with a purchase price on the higher end
  • Think interest rates could rise in the next few years and want to keep the current rate
  • Plan to stay in your home for many years
  • Are buying their first home, or are looking to upgrade to a larger more expensive home where conventional fixed rates will not apply

Features

A jumbo loan takes over for the higher of the conforming or high balance conforming loan limit based on county loan limit availability.  Currently jumbo loans are more restrictive for the borrower’s qualifications requiring more money down, higher credit scores and a lower debt to income ratio in some instances.

30-year fixed rate

This is the most common mortgage that homebuyers compare rates to. The rate is good for 360 months (30 years) and is amortized over that time period to payoff.

20-year fixed rate

Typically there is not much difference in rate between the 30-year fixed and the 20-year fixed rate mortgage. This rate is based on 240 months and as the term decreases to pay back, the payment owed increases.

15-year fixed rate

This mortgage will be due in full in 180 months. It will have an even higher payment than the 20-year term.

Jumbo Mortgages Terms  

Pros
One loan that exceeds conventional loan limits
Cons
Requires larger down payment
Underwriting guidelines can be more strict

Jumbo Mortgage Products  

Pros
Fixed Rate for 30, 20 or 15 year terms
Multiple ARM Products
Cons
Rates typically higher than the conventional mortgage rates
Mortgage rate only locked in for the duration of the ARM you select