A jumbo loan is one that is larger than what is considered the average home loan. The Department of Housing and Urban Development sets these loan levels based on the average value of buying a home in a specific area. In areas like California and New York, jumbo loans become more important because the homes are generally more expensive. Jumbo mortgage interest rates, then, apply to these loans. In most cases, these are loans over the value of $417,000 but may be higher in some areas due to high values in the real estate market.
Why You Need These Loans
For anyone who hopes to buy a home over the set value of a jumbo loan, it becomes important to compare jumbo mortgage interest rates from various lenders. These loans are unique because they are not available as Freddie Mac or Fannie Mae loans, which means they can be a bit harder to obtain. However, interest rates can still be very competitive – though they may not be as low as many expect.
Take a look at the jumbo mortgage interest rates available today by requesting a quote from more than one lender. Keep in mind that these loans can still offer nice features and savings such as low-interest rates and shorter loan term lengths. Sometimes, these loans will require a down payment of between 5 and 10 percent, though the amount differs based on the lender.
For those who need the most up to date jumbo mortgage interest rates, remember that these terms change often. Lenders want to provide these loans to well-credited borrowers, but they are a higher risk loan. As a result, these are not loans that are wildly available to just anyone. You’ll need to qualify based on income, credit, and other requirements.
Learn the current jumbo mortgage interest rates by visiting Guaranteed Rate. Check out the loan options available to buy a home at Guaranteed Rate.
