Jumbo Loan: A jumbo loan , also known as a jumbo mortgage , is a form of home financing for whose amount exceeds the conforming loan limits set by the Federal Housing Finance Agency (FHFA) . As a ...
Understanding the Definition of Jumbo Loans. Whether you are trying to purchase a house in an area where property tends to be very expensive or if you are purchasing an upscale dream home, the house you want to purchase might cost more than it's possible to finance through a "conforming" loan.
jumbo loan meaning: in the US, a very large mortgage. Jumbo loans involve more financial risk and cannot be traded by organizations that are controlled by the government such as Fannie Mae and Freddie Mac: . Learn more.
Jumbo loan definition: a loan that exceeds the standard maximum amount offered by a financial institution | Meaning, pronunciation, translations and examples
We started noting that the banks started dropping their jumbo loan rates from, say, half a percent over their conventional loan rates down to their loan conventional rates or even a little below," Gray said.
Definition of jumbo loan words. noun jumbo loan a loan that exceeds the standard maximum jumbo loan popularity. A common word. A common word. It's meaning is known to most children of preschool age.
A mortgage loan so large it exceeds the limits for securitization by U.S. government mortgage banks. As such, a jumbo loan cannot be guaranteed or securitized by Freddie Mac or Fannie Mae . Because of this, jumbo loans carry higher credit risk and have historically been traded at a premium to conventional mortgages.
A jumbo mortgage is a home loan for more than $453,100 in most of the country. Get a better understanding of this product. High-dollar home loans have more demanding requirements, but they are ...
Jumbo mortgage loans are a higher risk for lenders, mainly due to their larger size rather than credit quality. This is because if a jumbo mortgage loan defaults, it may be harder to sell a luxury residence quickly for full price. Luxury prices are more vulnerable to market highs and lows in some cases.
With the exception of some FHA and VA loan products, any mortgage for higher than this amount would be considered a jumbo loan. The word “Jumbo" is also used for a special type of Fannie Mae and Freddie Mac product known as “jumbo conforming,” for certain high-cost counties.