jumbo mortgage?

Question

why is there a jumbo mortgage?
would it benefit the real estate world to eliminate the jumbo mortgage?

Answer 1

If you have a jumbo mortgage, you can afford to pay higher interest rate, like if you buy a luxury car you pay more taxes. Good Luck!

Answer 2

The reason they have jumbo mortgage programs is because they are more risky. Why you ask? Because while the person borrowing over $417K for a house may have the ability to pay for it, if they lose that great job most of them are not likely to find one paying the same amount very easily. It is a much higher risk for default then the current Fannie Mae/Freddie Mac ceiling of $417K.

As a mortgage broker, I'm certainly glad we have the jumbo deals!! :-)

Answer 3

There are jumbo mortgages because Freddie Mac and Fannie Mae wont back a mortgage over 417K.

There are jumbo mortgages because their are homes that cost more that 417k.

What do you mean eliminate jumbo mortgages? Eliminate homes that cost that much.........or make the government back ALL big or small mortgages???

You question is not clear.

Answer 4

a jumbp mortgage is any residentual mortgage outside fannie mae and freddie mac guidelines the ceiling is 417k this is basically conventional mortgage guidelines.

any loan above that, is considered a jumbo loan! it cant be eliminated! Or borrowers that buy a home over that loan amount could not get financed.

Answer 5

Jumbo is simply for higher loan amounts, eliminating would hurt the real estate world tremendously. Most would not be able to buy more expensive homes, or to sell the oes they already have because financing would not be available

Answer 6

is any residentual mortgage outside fannie mae and freddie mac guidelines the ceiling is 417k this is basically conventional mortgage guidelines. I found interesting information about your answer & the best options here.
http://all-mortgage-calculators.blogspot.com/2007/07/mortgage-loans.html
Good luck!