What is a Jumbo Mortgage Loan?

Life throws some large expenditures at us from time to time and there is no less painful way to handle them than to take advantage of that hard earned equity in your home. If your thinking about a JUMBO mortgage loan than educating yourself to all options is the way to making a well informed decision.

A jumbo mortgage is a home loan that exceeds a certain amount . Loans above the maximum loan amount established by Fannie Mae and Freddie Mac are known as 'jumbo' loans. Because jumbo loans are bought and sold on a much smaller scale they will have a higher interest rate than the norm.

Jumbo mortgages come in a variety of options and terms. Calling a trained loan professionals can ensure that all your options are opened. Look over the options explained below and call a loan professional to get a personalized quote.

3/1 jumbo arm- A 3/1 jumbo ARM is an adjustable-rate mortgage, that has an initial interest rate for the first three years and then changes annually thereafter, based on an index.

5/1 jumbo arm- A 5/1 jumbo ARM is an adjustable-rate mortgage, or ARM, that has an initial interest rate for the first five years, and which changes annually thereafter, based on an index.

15 year fixed rate jumbo mortgage- A 15-year jumbo mortgage is a home loan that exceeds the limits set by Fannie Mae and Freddie Mac and is set for the term of 15 years.

30 year fixed rate jumbo mortgage- A 30-year jumbo mortgage is a home loan that exceeds the limits set by Fannie Mae and Freddie Mac and is set for the term of 30 years.

Jumbo mortgage loans can be tricky and hard to understand. We get lots of questions concerning this type of loan and one of the most often asked is:

"What is a JUMBO mortgage exactly anyway?"
Typically, a jumbo means a loan amount above $417,000 that are typically for high end expenditures.

According to a recent 2006 PR newswire, The average jumbo 30-year fixed rate jumped from 6.56 percent to 6.64 percent. That may be a sign that the time is now to get that Jumbo ARM mortgage underway.