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Super Jumbo Home Loans
A Super Jumbo Home Loan is a mortgage program that involves the lending of mortgage amount ranging from 417,000 to 20 million dollars. These residential/commercial mortgages are lent to borrowers having decent credit, especially to those who can owe a loan amount exceeding the conventional jumbo loan limit of 650,000$. However, some mortgage lending agencies have provisions customized for people with poor credit.
A Jumbo loan amount starts at 417,000$ and is limited to 650,000$ as per the guidelines of Fannie Mae. However, the super jumbo loan amounts are not confined to any such aforementioned parameters and can go up to as high as 20 million dollars. The super jumbo loan parameters are tailored to match the loan requirements of the borrowers.
The current super jumbo home loan program provide borrowers with three different mortgage options –
- Interest Only
- Option Arm Loans
- Fixed Rate Mortgages
Of these three, the Interest Only loan is the most popular. For better understanding, following is a brief description of the three common super jumbo mortgage options:
- Interest Only: These loans are made available to borrowers for a definite period with interest-only remittance. The interest only option includes both fixed rate and adjustable rate mortgages that are provided as per the terms of the loan owed. For instance - On owing fixed rate mortgages, borrowers can enjoy the benefits of an assured interest rate and fixed payment until the period of loan expires.
- Option Arm: The option arm loan program is generally made available for a short period and lower monthly payments as compared to that of the Interest Only payments. Besides, this loan program offers borrowers four different loan payment options of–
- Minimum Payment
- Interest Only Payment
- 15 Year Fixed Rate Payment
- 30 Year Fixed Rate Payment
- Fixed Rate: As mentioned earlier, Fixed Rate mortgages allow the borrowers to enjoy the benefits of guaranteed interest rates and fixed payments, until the expiry of the loan period. Fixed rate mortgages are perhaps, more advantageous than adjustable rate mortgages mainly because-
- Borrowers can make fixed monthly payments
- The principal is reduced
- Down payments are customized as per requirement
Therefore, those who look forward to purchasing a high-end luxury home or apartment, a Super Jumbo Home Loan is just what they need.
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