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Jumbo Loan Rates

Written By: admin - Feb• 13•13

What Are The Typical Jumbo Loan Rates?

Jumbo loan rates can vary. Typically, the rates (at least as of the writing of this post) are around 3.9-4.25%. Some people prefer to go the route of securing an interest only loan on such properties. These versions of the loans are generally lower, around the 2.5% range.

A jumbo loan, or jumbo mortgage, as they are perhaps more typically called, is a mortgage loan that has a total sum that is greater than the conventional mortgages. The determination of what qualifies as such a loan is determined by Freddie Mac and Fannie Mae. Rules and laws change throughout the years, but typically, any mortgage that exceeds the amount of about $420,000 would fall under this category of loans.

These particular loans pose a threat to the lenders of such instruments. This is because it is often much more difficult to sell a luxury-type home if it is defaulted on. It is also for this reason that lenders prefer as high of a down payment as they can get when closing on the loan.

 

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