Jumbo Mortgage Loans
Jumbo mortgage loans are large loans for expensive home, usually in excess of $333,700.00 (at the time of this writing). Jumbo mortgages are provided by most lending institutions and can be either fixed or adjustable. These loans are subject to special restrictions and are often charged an interest rate premium.
Jumbo mortgage loans are called this because that amount exceeds the conforming mortgage amount limit set by congress. Usually you will need to fill out the maximum amount of paperwork with one of these babies!
You can apply online for jumbo mortgage loans but you will probably have to fill out a bit more paperwork for the final loan. When comparing When comparing loans, make sure you compare apples to apples. Take into consideration the loan fees and points you will be paying and make sure you do the comparison on the same day (or adjust the quote if the rate changes in between the time you get the quotes)
Other options to jumbo mortgage loans include an 80-10-10 loan. With this loan you actually take out 2 mortgages- one is for 80% of the homes value (presumably less than $333,700.00), and the other is for 10% of the homes value and you will need to put 10% down. This could bring both loans under the amount for jumbo mortgages and save you a few interest points.
An option to reduce the payment on jumbo mortgage loans is to take out an intersest only mortgage. With this type of mortgage, your payments consist of interest only for the first 5 years and can work out to be 2/3rds less than the conventional interest & principal payment! Keep in mind, however that with this type of loan you will not be paying on the principal until year 6 so you will have no equity in the home.