Jumbo mortgage loans are loans that are over the government-backed loan limit of $417,000 (up to $625,500 in some high-cost areas) set by Fannie Mae and Freddie Mac. Currently, jumbo loan interest rates are fairly low, so it may be a good time to lock in those rates. If you’re in the market for a jumbo loan, here are some tips to get the best deals.

  • Shop Around. Jumbo mortgage loans can’t be sold to Fannie Mae or Freddie Mac, so your lender will typically charge higher interest rates to compensate for that risk. Remember, though, you can shop around to different lenders and see which one can offer you the best rates. A mortgage broker can help you find all the best possible loan options, so you’ll get the best deal.
  • Apply Early and Carefully. Get ahead of the game by getting pre-qualified for your loan. Be careful when completing your loan application, and make sure your information is accurate and complete.
  • Put as Much Money Down as Possible. You’ll get better rates if you’re able to put down more than 20 percent of your home’s value as a down payment. A larger down payment reduces your lender’s risk, and lowers the interest rate you’ll need to pay.
  • Check Your Closing Costs. Some lenders may offer lower interest rates, but offset those low rates with higher closing costs and fees. When you’re researching your lenders and loans, make sure you compare closing costs just as carefully as you compare interest rates.

Find out more about jumbo loans

If you’re in the market for a larger home, remember that interest rates could go up in the future. You may want to act now to make sure you get the best deal. For help in researching your jumbo mortgage loan options, call Embrace Home Loans at 407-733-6425 or contact us online. We can work with you to find a jumbo mortgage that’s right for you.