Jumbo Mortgage

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Jumbo Mortgage

A mortgage loan so large that it exceeds the limits for securitization by U.S. government mortgage banks. A jumbo mortgage cannot be guaranteed or securitized by Freddie Mac or Fannie Mae. Because of this, jumbo mortgages carry higher credit risk and have historically been traded at a premium to conventional mortgages.

jumbo mortgage

A loan in an amount greater than the size limits for Fannie Mae or Freddie Mac purchase.The loans must remain in the lender's portfolio or be sold to other investors.Because the loans cannot be sold easily,some banks charge a higher interest rate for them.

Jumbo Mortgage

A mortgage larger than the maximum eligible for purchase by the two federal agencies, Fannie Mae and Freddie Mac.

The maximum was $322,700 in 2003. However, some lenders use the term to refer to programs for even larger loans, such as greater than $500,000.

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The average down payment for all purchase mortgages, including FHA, VA, non-prime, and jumbo mortgages in the second quarter was $49,127 or 15.
Jumbo mortgages, on the other hand, increased more slowly because these loans tend to stay on banks' balance sheets and are not funded with MBS.
First Internet Bank also offers fixed and variable rate conventional loans as well as jumbo mortgages and home equity loans.
National and regional banks have begun to price jumbo mortgages with lower interest rates than conforming loans, in part to attract high-income customers, but also for other reasons, according to an executive with a leading housing finance analytical firm.
Banks would need to issue 56 percent more jumbo mortgages to fill the gap.
Jumbo mortgages are those loans that are too large for government assistance through Fannie Mae, Freddie Mac and the FHA which is available for mortgages that don t exceed $417,000 and $729,750 in more expensive areas of the country.
MC: It's really a myth that jumbo mortgages are unavailable.
Chase offers a full array of mortgage products through its Bellingham office--from first-time homebuyer and affordable loan products to jumbo mortgages and home equity loans.
One interesting indicator of mortgage market conditions is the interest rate spread on jumbo mortgages.
Interest rates are significantly lower on conforming mortgages than on jumbo mortgages.
In 1994, jumbo mortgages accounted for about 8 percent of all mortgages for purchasing a home, for less than I percent of the mortgages to lower-income borrowers, and for less than 3 percent of the mortgages to black or Hispanic borrowers.
Liberty Bank offers jumbo mortgages for qualified borrowers requesting loans exceeding the conforming loan limit, which is $417,000 in the Chicago area.