Jumbo Loans

Jumbo loans are any loans that exceed the conforming or super conforming loans limits. Typically any loan larger than $417,000 will fall under what is know as jumbo loans.

These loans are not insured by Fannie Mae or Freddie Mac, nor are they guaranteed by the Federal Housing Authority as a result you will need to have a higher fico score usually 660 or higher. As well as have at least 10% to put down in case of a purchase or 10% equity in case of a refinance.

They do come with options. You have the ability to choose a fixed rate where the interest rate will remain constant for the life time of the loan or you have the option of choosing an adjustable rate. Adjustable rates will have a low fixed rate for a period of time 3, 5, 7 or 10 years and then be subject to market adjustments that could send the interest rates higher.

You also have the ability of choosing to split the loan into two mortgages. Where you would have a first mortgage for 80% of the purchase price or appraised value and have a second mortgage for the remaining 10%. The purpose of this scenario is to obtain a lower interest rate on the first mortgage to save your money.

If you have any questions do not hesitate to reach out to me.

Craig Thibeau
Senior Loan Officer
North East Financial Middletown, CT
Ph 860-334-1354
NMLS 398576 Company NMLS 117273
craig@northeast-mortgage.com
www.northeast-mortgage.com