วันอาทิตย์ที่ 19 พฤษภาคม พ.ศ. 2562

The Big Jumbo

Mortgage loans that are approved by lenders can be bought and sold in the secondary market to other lenders or directly to Fannie Mae and Freddie Mac. Those that buy and sell those loans know they are getting a commodity in essence; a product that is universal. In the mortgage world that means a loan has certain credit and property characteristics required by Fannie and Freddie. One of those characteristics is the maximum loan amount. Any loan amount beyond the maximum limit is affectionately called a "jumbo" loan and any loan at or below the limit is called a conforming loan.

Historically, Fannie and Freddie would adjust the loan limit each year based upon previous year's housing prices but since 2006 the limit has been $417,000. For most of the country anyway. In other areas deemed "high cost" by Fannie and Freddie the conforming loan limits are higher.

Besides the obvious difference in loan amount, a jumbo loan will carry a higher interest rate than a conforming one. คอนโดมือสอง กรุงเทพ Depending upon the markets and the lender the difference can be about a half percent but have been as high as one and a half percent greater than a conforming loan rate in recent years. A jumbo loan is simply more expensive. That's why those who buy a home with a sales price above $417,000 attempt to put down enough money or acquire other funds to get the primary loan amount down to the conforming level.

Where are some of the high cost areas? Some of the areas aren't surprising and include properties in California, New York and Florida but also properties in Alaska, Hawaii, Guam and the U.S. Virgin Islands. In these areas, the conforming loan limit is $625,500, not $417,000. However some of the areas that allow for a higher conforming loan limit are a bit surprising with areas designated as high cost in select places such as Georgia and North Carolina. Typically these higher cost areas are large, metropolitan areas with higher median incomes.


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