| A jumbo mortgage is different than a conforming loan. | | | | competing for your business, that lenders are forced |
| A jumbo loan amount exceeds that limit set by FNMA. | | | | to offer their lowest possible rates in order to get your |
| That limit can change every year, but is around | | | | business. For example, a local broker, who has a |
| $300,000. With a jumbo mortgage, the interest rate is a | | | | steady client base, may not be motivated to offer the |
| little higher than other similar mortgage loans that are | | | | lowest rate or the lowest closing costs, when the |
| for smaller amounts. The reason the rate is higher is | | | | competition is only local. However, when you have the |
| because the loan has a perceived higher risk by | | | | largest group of lenders online competing for your |
| lenders. | | | | business, you can get a much better offer. |
| A jumbo loan is considered a non-conforming loan. | | | | Where is the best place to apply for a jumbo loan? |
| Conforming mortgage loan programs have perceived | | | | There are many mortgages companies online who |
| less risk by lenders and have lower interest rates. | | | | can provide you quotes from multiple lenders. These |
| Most mortgage loans that are done by lenders are | | | | companies will be able to provide you with quotes for |
| conforming loans. Jumbo loans are a small percentage | | | | usually up to 4 different lenders. This is a great way to |
| of the mortgages that are done. | | | | make sure to get competitive offers. However, make |
| Although most mortgage loans that are done in the | | | | sure you still ask each competing mortgage lender |
| US, are smaller loan amounts than those limits set by | | | | about the points they will charge, their closing costs |
| Fannie Mae and Freddie Mac for jumbo loans, in | | | | and any other fees, to make sure you are getting the |
| California, home prices are so high, that there are | | | | best loan you can. |
| many jumbo home loans done there. | | | | Getting the lowest interest rate does not always make |
| If you live in California and/or are looking to get | | | | the loan you want, the best deal. The lender can |
| approved for a jumbo loan, the internet is a great | | | | charge more in other places that you might not catch |
| place to apply to get a jumbo loan for a few reasons. | | | | until closing. |
| First of which is that there are so many lenders online | | | | |