A jumbo loan is a mortgage where the amount is higher than the limits set by the Federal Housing Finance Agency. It was created specifically to finance higher value and luxury properties, with the value of the loan varying by state, and even county.
Loan Highlights and benefits
A jumbo home loan can be a good option for borrowers who need to borrow more than the maximum conforming loan limit.
- Higher loan amounts: Jumbo home loans are designed for borrowers who need to borrow more than the maximum conforming loan limit. This means that borrowers can access higher loan amounts, which can be beneficial for purchasing high-value homes or homes in expensive real estate markets.
- Competitive interest rates: Jumbo home loans may offer competitive interest rates that are comparable to or even lower than those of conforming loans. This can help borrowers save money over the life of the loan.
- Variety of loan options: Jumbo home loans may be available in a variety of loan types, including fixed-rate and adjustable-rate mortgages, as well as interest-only and other non-traditional loan options. This can provide borrowers with more options for finding a loan that fits their needs and budget.
- Potential tax benefits: Depending on the borrower's situation, they may be able to deduct the interest paid on their jumbo home loan from their taxes. This can help reduce the overall cost of homeownership and make it more affordable.