   
|
|
Jumbo Loan
|
A jumbo loan is a mortgage with a principal balance that exceeds the lending limitations established by Freddie Mac and Fannie Mae, the purchasers and guarantors of the secondary mortgage market. The cutoff principal amount above which any loan is considered a jumbo loan is set each year. The jumbo loan is often called a non-conforming loan, and while every jumbo loan is nonconforming, not every nonconforming loan is a jumbo loan. (For example, a mortgage may be below the conforming loan limit, but involve less borrower documentation than is typically required.) A jumbo loan will generally have a higher rate of interest than a conventional mortgage. A borrower who needs to borrow modestly more than the conforming loan limit might consider a conventional mortgage and a small secondary mortgage as an alternative to the jumbo loan.
Rate this jumbo loan definition...
|
|
Where is the market headed? The answer may surprise you. Find out
right now with the exclusive & Barron's recommended charts of Chart of the Day.
|
Popular Terms: EBITDA, liquidity ratio, 401a, deferred tax, command economy, 144a, per diem, margin rate, deferred revenue, required rate of return, cancelled check, open position, stock split, ex-dividend, implied volatility, in escrow, irrevocable trust, limit order, quality assurance, risk management, 1035 exchange, Key Rate Duration, class C shares, current ratio, Zero Cost Collar, 1031 exchange, wholly-owned subsidiary, VIX, reverse mortgage, retained earnings, phantom income, option premium, minority interest, labor relations, ex-dividend date, covered put, real GDP, LIBOR, inflation, dividends payable, diluted share, debt service coverage, balance sheet, APR, equities, average price per share, FICO score, FTSE, stock market close
|
|
| |
