| The high cost of real estate in California forces many | | | | California real estate. You might be able to avoid |
| homeowners into Jumbo mortgage loans. What are | | | | jumbo mortgage rates by financing your home with a |
| jumbo loans? Any mortgage amount that is higher than | | | | combined first and second mortgage for the balance |
| the conforming loan limit is considered a jumbo | | | | you need. Many lenders now offer loan programs to |
| mortgage. Here are several tips to help you avoid | | | | help California homeowners avoid jumbo mortgage |
| paying too much for your California mortgage loan. | | | | rates in this manner. |
| The conforming loan limit is set each year by Fannie | | | | Another serious problem for California homeowners is |
| Mae and Freddie Mac and is the limit for traditional | | | | Yield Spread Premium. Any markup of your interest |
| mortgage lending. In 2007 this limit is $417,000; if your | | | | rate, jumbo or not, will be magnified by the high cost of |
| home is valued above this limit you may be required to | | | | your home and you will pay thousands of dollars every |
| use a Jumbo mortgage loan. The problem with using a | | | | year unnecessarily. Yield Spread Premium is the |
| Jumbo mortgage is that you will be required to pay a | | | | markup of your mortgage interest rate to boost your |
| higher interest rate for the loan. | | | | loan originator's commission. You can learn more about |
| This problem of qualifying for a higher interest rate with | | | | your jumbo mortgage options in the State of California |
| a jumbo mortgage is magnified with the high cost of | | | | with a free mortgage tutorial. |