Jumbo Loans: A Bigger Mortgage With a Better Rate?
If you're buying a higher-priced home, you may eventually hear the words "jumbo loan."
The name makes the basic concept sound pretty straightforward: you're borrowing a larger amount of money.
But jumbo financing doesn't always work the way buyers expect.
For some highly qualified borrowers, a jumbo loan can offer surprisingly competitive pricing. At the same time, lenders may expect stronger credit, more money in reserve, and a larger down payment.
So when does a mortgage become jumbo, and what should you consider before choosing one?
