Locating the best jumbo mortgage rates means doing a bit of research to compare offers from multiple mortgage and home loan lenders. This type of loan is not available through all mortgage lenders. Some do not lend these loans because they tend to be more of a higher risk loan. However, finding these rates, applying for them, and locking them in can help many individuals purchase the home they want even when the value of that property is higher.
What Is a Jumbo Mortgage?
To find the best jumbo mortgage rates, individuals need to know when these rates apply to the home purchase they plan to make. A jumbo loan is one that is larger than normal. The value of the loan exceeds what is considered the conforming loan limit. This is the loan limit set by the FHA (Federal Housing Administration). The amount of this loan can change from year to year. However, these loans are unique in that not all lenders will lend them. That is because these loans cannot be purchased by or secured by Freddie Mac or Fannie Mae, the country’s largest loan buyers. In short, they are hard to obtain.
For 2017, the FHA conforming loan limit was $424,100 in most of the United States. Some areas have higher rates. This means anyone looking to buy a home over this value will need to obtain the best jumbo mortgage rates available for it from a third-party lender. Keep in mind that there are many lenders that offer and even specialize in this type of loan. They are available, and borrowers should consider investing in them if they have the financial means to buy a home with this size of a mortgage or with a large enough down payment to qualify.
When looking for the best jumbo mortgage rates consider going to Guaranteed Rate.