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Jumbo Mortgage

A Jumbo mortgage is a mortgage with a loan amount above conventional loan limits. Jumbo mortgages apply when limits of agencies that purchase the bulk of residential mortagages in the U.S. (Fannie Mae (FNMA) and  Frederic Mac (FHLMC) don't cover the full loan amount. They set a limit on the maximum dollar value of any mortgage which they will purchase from an individual lender. Currently, this limit is four hundred and seventeen dollars for a 1-Family home and differs for 2-4 Family homes. This leaves a portion of the market to look elsewhere for placement. Other large investors, such as insurance companies and banks, step in to fill the need with maximum mortgage amounts going to the one million or two million range.

 The average interest rates are typically greater than normal for conforming mortgages, and vary depending on property types and mortgage. Mortgage loans that exceed the loan amounts acceptable for sale in the secondary market; these jumbo loans must be packaged and sold differently to investors and therefore have separate underwriting guidelines.

Mortgage Rates NY will be happy to advise you on what loan type and program is right for you. 

Call Mortgage Rates NY today, at (888) 996-9529.