In the past, home buyers looking for jumbo loans may have had challenges in qualifying or finding a lender. Today, thanks to online mortgage services and traditional lenders, the choice of a 30 year fixed jumbo mortgage often makes it possible for the purchase of a dream home without the need for an extremely large down payment.
The term “jumbo loan” is any loan that is more than the conforming loan amount that is established by the Federal Housing Finance Agency. As it is over these amounts, it is a loan that is not handled through Fanny Mae or Freddie Mac and typically has specific clauses in the loan to provide protection.
The value of the property for a 30 year fixed jumbo mortgage must be over $424,100, but this number does change based on states, cities or other geographic locations. Areas where the housing market is very high will have an increased minimum amount for a jumbo loan and can be as much as $636,150 to be over the conforming loan limit.
Getting the Best Rate
With the larger loan amounts of the 30 year fixed jumbo mortgage, shopping around and getting the lowest possible rates should be a priority. These loans are more difficult to qualify for, so know in advance what you need to provide proof of income. Additionally, focus carefully on your credit score well in advance of the application as even a small upward trend in your score can be instrumental in getting a lower rate.
It may be surprising to find the interest rate on a jumbo mortgage is very close to that of a conventional loan. Even the requirement for down payments on the loans has relaxed over time, making these a possible option to consider for those that qualify.
More information on the 30 year fixed jumbo mortgage rate and the mortgage qualification needs can be found at Guaranteed Rate.
