A Jumbo Mortgage For A Higher Priced Home
A jumbo mortgage is simply a very large mortgage just like its name implies. More specifically, a jumbo mortgage is a mortgage where the amount that is financed is more than the amount that has been set by GSE or Government Sponsored Enterprises who sets the guidelines for jumbo loans. GSE is a group of financial companies that maintains access to housing loans and reduces the cost of the loans so that consumers can buy homes. The traditional guideline amount that has been set for a mortgage by GSE has been $600,000.00 because this is the amount that GSE has set as part of their duties. If a mortgage is larger than this amount then it receives the class of being a jumbo mortgage. Since we know that there are many homes that cost more than that amount, then we should know that the need for a jumbo loan has increased because home prices have increased as much as there are homes that are available. Many lenders will offer jumbo loans, however some lenders do not. A j
