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Welcome to the Financing Resource Directory informational page
for home mortgage financing. Please read the information below.
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Jumbo Loans
A Jumbo Mortgage is a mortgage with a loan amount above conventional loan limits.
Jumbo Mortgages apply when agency (FNMA and FHLMC) limits don't cover the full loan amount.
Fannie Mae (FNMA) and Freddie Mac (FHLMC) are large agencies that purchase the bulk of residential
mortgages in the U.S. They set a limit on the maximum dollar value of any mortgage which they will
purchase from an individual lender. This leaves a portion of
the market to look elsewhere for placement.
Other large investors, such as insurance companies
and banks, step in to fill the need with maximum mortgage amounts going to the $1 million or $2
million range.
The average interest rates are typically greater than normal for conforming mortgages,
and vary depending on property types and mortgage amount.
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