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What is a jumbo mortgage?
By qwcdirect | July 15, 2010
A Jumbo Mortgage is a high amount mortgage loan set much above the conventional mortgage limit. This type of loan comes with a raised mortgage rate, considering the high risk involved which the lenders bear.
Jumbo mortgages lets the borrower play a bigger game, with much more than what he/she could expect to spend without getting jumbo mortgage sanctioned. Jumbo mortgages are available in two primary options in mortgage rate calculation. One can either opt for fixed rate mortgage or go for interest only mortgage payment options.
Jumbo mortgages are suitable for those who plan to buy another home for security or investment purpose, but people with equal to or less than four residential units can only apply for jumbo mortgage plan. Jumbo mortgages enable the borrower to make huge down payment that lets him take hold f the property right away. However, he ends up paying hefty interest rate levied upon jumbo mortgage.
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