Jumbo Mortgages Making a Comeback
A “Jumbo” mortgage is defined as a loan that is too large to be bought by Freddie Mac or Fannie Mae. Depending on the state, limits range from just under 0,000 to 0,000.
When the credit crisis was at its peak, jumbo mortgages were hard to find. Lenders looked at them as an unecessary risk and these mortgages were down 70% in 2008 from prior years. Now that the dust has cleared, some companies are considering the jumbo mortgage market a new opportunity. As mortgage rates continue to drop, so do rates for 30-year jumbo mortgages.
Recently Bank of America began publicizing a program offering 30-year fixed rate mortgages with interest rates in the