Jumbo Mortgages: Low Rates, Strict Terms

Borrowers who need large will find an increasing number of lenders willing to offer jumbo mortgages. They’ll also find low rates. But the qualification requirements remain stringent.

 

Jumbo mortgages are home that are too big to be sold to Fannie Mae and Freddie Mac because they exceed the agencies’ conforming limits. In most parts of the country, the limit is $417,000. In high-cost areas, it’s $625,500.

 

The upper limit was lowered from $729,750 late last year. The decreased upper limit placed more borrowers into the market for in some parts of the country. Refinancers and buyers of high-end homes continue to drive up the demand for jumbo mortgages, says Jason Auerbach, division manager of First Choice Services in New York City.

 

Many lenders and investors who buy jumbo loans from lenders had pulled back from the jumbo market after the 2008 financial crisis. But they’ve slowly returned, says David Adamo, CEO of Luxury in Stamford, Conn.

 

Jumbo Loan Limits » Jumbo Mortgages: Low Rates, Strict TermsBorrowers who need large home loans will find an increasing number of lenders willing to offer jumbo mortgages. They’ll also find low rates. But the qualification requirements remain stringent.