Jumbo loans are a type of loan that exceed the conventional loan limit in the area where you plan to purchase a home, and can offer up to almost one million dollars. They are more difficult to qualify for than conventional loans due to the higher loan amount. You will have to have a credit score of at least 680-700. The minimum down payment required for a Jumbo loan is generally between 15-20-percent.
If you’re buying a home that costs over one-million dollars, the next level above the Jumbo Loan is the Super Jumbo Loan which can provide up to approximately three million dollars for the purchase of a home. These loans are more difficult to qualify for and Individuals who are applying for a super jumbo loan must have excellent credit.
Mortgage rates vary depending on how long the mortgage term is. Many people opt for a 30-year loan, since the monthly payment is less. On the other hand, a 15 year rate will have a higher monthly payment, but more of your payment will go toward the principle balance. A 15 year mortgage will have a lower interest rate, up to one-percent lower, than the 30-year loan.
An adjustable rate mortgage will have a very low initial rate for the first five years on the loan, but after that will increase on an annual basis.
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