    

|
|
|
|
|
|
| |
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 with the exclusive & Barron's recommended charts of Chart of the Day. |
|
Popular Terms: in escrow, stock split, deferred revenue, implied volatility, cancelled check, FICO score, wholly-owned subsidiary, required rate of return, phantom income, 401a, risk management, average price per share, annual return, margin rate, 144a, ex-dividend, 1031 exchange, ex-dividend date, class C shares, covered put, liquidity ratio, retained earnings, debt service coverage, VIX, current ratio, open position, diluted share, option premium, balance sheet, limit order, deferred tax, inflation, reverse mortgage, 1035 exchange, FTSE, LIBOR, per diem, dividends payable, stock market close, irrevocable trust, Key Rate Duration, APR, real GDP, EBITDA, minority interest, labor relations, Zero Cost Collar, quality assurance, command economy
|
|
| |