A Jumbo loan, also known as a non-conforming loan, is defined as a loan where its amount exceeds $424,100—the loan servicing limits set by Fannie Mae and Freddie Mac.
Historically, Jumbo loans were known to have much higher rates and required larger down payments. Not anymore! With the numerous jumbo lenders we work with, a borrower only needs 10% down, all the way to a $1,000,000 loan.
A Jumbo loan can either be an adjustable-rate mortgage (ARM) or a fixed-rate mortgage.
A Jumbo/non-conforming fixed-rate mortgage is a home loan with a monthly payment that stays the same throughout the term of the loan.
A Jumbo/non-conforming adjustable-rate mortgage (ARM) is a home loan where the rate is locked for period of time (between 3 and 10 years). It then fluctuates with the market when the term is up. An ARM loan is a 30-year loan that will adjust every 12 months after the initial locked term expires. The benefit of an ARM is that you will end up with a lower monthly payment as compared to the fixed-rate mortgage for a period of time.
Don’t let a limited down payment stop you from buying the home of your dreams. We can do a Jumbo loan all the way to $2.5 million. Our team of experienced and friendly home loan lenders are standing by to make sure your home buying experience is stress-free. We do this by providing an advisory, personal & streamlined approach to every loan we process. Contact us today to learn more.
Webster Groves, MO
St Genevieve School