Jumbo Mortgage?

Clueless...what's this all about? Wondering how much you have to borrow for you to incur higher rates on part of your loan?

thanks for clarification

If you borrow more than 322k... you automatically jump into 'Jumbo Mortgage' category. You must get a jumbo if you want to borrow this amount or more.

Expect to pay a half point higher on any morgage compared to what they call a 'Conventional' mortgage (Under 322k).

I think anything over 359,100 is jumbo...

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Posted by Gonnacatchapeacock

nov2004bride - We too want to take out a 30 year fixed mortgage - what i'm not too clear about is the Home Equity - can you explain that a bit more - in other words, if we do the same - getting a part Home Equity prevents you from having to get a Jumbo...sorry for my ignorance...:) :)

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That is right. We borrowed the most we could through a 30 yr fixed and the rest (which was a much lower amount) was the Home Equity Line. On that it is not fixed so our payments are different every month but we plan to have it paid off in the next couple of years anyway.

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Posted by LisaW

I think anything over 359,100 is jumbo...

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higher than that...our first mortgage is for $359,400.00 and it is not a Jumbo.

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Posted by FTRBRIDE

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Posted by LisaW

I think anything over 359,100 is jumbo...

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higher than that...our first mortgage is for $359,400.00 and it is not a Jumbo.

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I was just talking to the mortgage banker about this and she said anything over 359k...

It might be 359,600, but it is in that ballpark...

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Posted by nov2004bride

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Posted by Gonnacatchapeacock

nov2004bride - We too want to take out a 30 year fixed mortgage - what i'm not too clear about is the Home Equity - can you explain that a bit more - in other words, if we do the same - getting a part Home Equity prevents you from having to get a Jumbo...sorry for my ignorance...:) :)

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That is right. We borrowed the most we could through a 30 yr fixed and the rest (which was a much lower amount) was the Home Equity Line. On that it is not fixed so our payments are different every month but we plan to have it paid off in the next couple of years anyway.

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I'm really confused about the Home Equity factor. We didn't have to do it, but if you don't own a house already, how can you get Home Equity on a house you haven't yet bought. Just interested...

Thank goodness for the internet....

From bankrate:

30-year jumbo mortgage
A 30-year jumbo mortgage is a home loan that exceeds the limits set by Fannie Mae and Freddie Mac (the 2005 limit is $359,650; $539,475 in Alaska, Hawaii and the U.S. Virgin Islands). Jumbo mortgages generally have a slightly higher interest rate than smaller (sometimes called 'conventional' or 'conforming') mortgages.

Looks like they increased the amount of the Jumbo cut-off in the past few years.

I knew I should have done a search before I posted. But you get the general idea.

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Posted by skew

jumbo mortgage range is from $359,651 to $1,000,000

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Hmmmm.... with those numbers I might be able to get a mortgage for just under that cutoff.

Would be nice to avoid Jumbo rates if possible.

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Posted by djswedding2006

i don't think the interest rate it that much higher for the jumbo considering that interst rates are presently so low

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Jumbo rates are ALWAYS higher than Conventional. Granted its usually only 1/4 to 1/2 point higher. But there is always a difference.

When rates dip... they both dip accordingly. When rates rise... the both rise accordingly.


Current national average:

30yr Fixed Conventional: 5.33%
30yr Fixed Jumbo: 5.62%

Bankrate.com