Jumbo Loan Quick Facts
Minimum Down Payment
Minimum Credit Score
Max Debt-to-Income Ratio
What is a Jumbo Loan?
A Jumbo Mortgage is any single loan amount over the conforming loan limit set by Fannie Mae and Freddie Mac, which is currently $484,350 for a one-unit property in most of the United States. Conforming limits may be higher in areas of the country with more expensive housing; for example, the conforming limit is $726,525 in Alaska and Hawaii. Jumbo Mortgages are non-conforming loans, so they are not backed by Fannie Mae and Freddie Mac.
What are the benefits of a Jumbo Loan?
Jumbo Loans offer the following features:
- Allow purchase of a more expensive home.
- In some cases, no private mortgage insurance is required with a larger down payment.
- Closing costs are about the same as other mortgage programs.
- Flexibility to take advantage of refinance opportunities.
Who may benefit from a Jumbo Loan?
A Jumbo Loan may the right fit for you if:
- You can afford a more expensive primary or second home and higher monthly payments.
- You want a 15-year or 30-year fixed rate.
Sample Loan Scenarios:
Loan Scenario: $600,000 purchase price, $540,000 loan amount, 10% down payment, $4,655.53/month (PITI), 15-year fixed 5.125% interest rate, 5.208% APR. Subject to property type, loan-to-value, and credit score.
Loan Scenario: $600,000 purchase price, $480,000 loan amount, 20% down payment, $2,757.09/month (PITI), 30-year fixed 4.5% interest rate, 4.631% APR. Subject to property type, loan-to-value, and credit score.
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