What is a Jumbo Loan?
Jumbo loans provide financing up to $5 million for the purchase of luxury and high-cost homes. With a jumbo loan, you can achieve the kind of lifestyle you want to live — whether you’re upgrading or purchasing an investment property.
The loan is called a jumbo loan because the amount is higher than conventional lending limits, which is the maximum amount that Fannie Mae and Freddie Mac will purchase in the secondary market.* Like conventional mortgages, jumbo loans can either be fixed rate mortgages or adjustable rate mortgages (ARMs). Each brings with it specific features and benefits based on the length of time you’ll be living in your home. For example, if you’re planning to live in your home for seven years, a jumbo adjustable rate mortgage may be more favorable. But it you’re planning to live in the home long-term, a jumbo fixed rate mortgage may be a better option.