What you should know about jumbo loans
05/26/2015 | Author: Editorial Staff
Between millennials who are now qualifying for loans thanks to an improved economy and luxury homebuyers who can purchase bigger homes for less money, jumbo loans are gaining popularity in Texas. Here are the basics about jumbo loans so you can help those clients who may qualify.
What is a jumbo loan? A nonconforming loan with mortgage amounts higher than those set by Fannie Mae and Freddie Mac.
How much is a homebuyer spending with a jumbo loan? More than $417,000 in Texas.
Who can use a jumbo loan? Buyers purchasing primary residences, investment properties, second homes, or vacation homes.
Are they fixed-rate or adjustable-rate? Buyers can choose either option.
How are the interest rates? Recently, they’ve been slightly lower than conforming and FHA loans.
How much is the downpayment? Usually larger than conforming loans, with some averaging between 10% and 15%.
While jumbo loans may have lower interest rates and other attractive features, make sure your clients find out all its pros and cons before they choose it over other types of mortgage loans.