Question:

What are the features of 15 year jumbo mortgage loans?

Answer:

A 15 year jumbo mortgage loan will have maturity of 15 years, higher rates and is not backed by Freddie Mac and Fannie Mae - the two semi-government entities buying mortgage loans on the secondary market. Jumbo and super jumbo loans are mortgages exceeding the official conforming loan limit, set by Freddie Mac and Fannie Mae on an annual basis.

Mortgage loan limits for 2008 are increased and jumbo loans are easier to take.

Conforming mortgage loans limits for single unit houses are increased from $417,000 ($625,500 in Alaska, Guam, Hawaii and the Virgin Islands) up to $729,750 for the current 2008. However, though, interest rates are still high - most lenders do not extend those loans with conforming rates. Rather, they are still treated as jumbo loans.

It seems, though, that there is a downward trend on the jumbo loan rates; lenders seem to get accustomed to those higher conforming loan limits.

15-Year jumbo home loan interest rates are lower than the 30-year jumbo rates.

As standard 15-year conforming fixed rate mortgages have lower rates than the 30-year loan, the 15-year jumbo loan carries slightly lower rates than the 30-year jumbo. However, payments are higher due to the shorter mortgage amortizing period.

Other popular non-conforming loans, other than the 15 and 30-year fixed rate jumbos, are the 30-year Interest Only jumbo and super jumbo, and different adjustable rate Jumbos for wealthier consumers.

Mortgage rates hit their lowest since 1955. Ask the home loan experts we recommend Quicken Loans how to take advantage of them.
Was this Mortgage QnA helpful?
Not at all
  • Currently 3.1/5 Stars
  • 1
  • 2
  • 3
  • 4
  • 5
Definitely
Add to this Answer

Mortgage QnA is not a common forum. We have special rules:

  • Post no questions here. To ask a question, click the Ask a Question link
  • We will not publish answers that include any form of advertising
  • Add your answer only if it will contrubute to the quality of this Mortgage QnA and help future readers
If you have trouble reading the code, click on the code itself to generate a new random code. Verification Code Above:
Bookmark and share this QnA: