Question:

Is it possible to find interest only jumbo mortgage loans?

Answer:

Yes, it is. Interest only jumbo mortgage loans are available but rates are likely to be higher than usual. Currently, jumbo loan limits are raised to $729,750 - that is, to be backed by Freddie Mac and Fannie Mae.

In your particular area it may not be possible to obtain the maximum conforming jumbo loan amount because it is based on the average home value in your area.

Interest-only jumbo home loans could be found at more than 1.5 percentage points compared to conforming loan amounts. Even if the Congress officially raised the conforming loan limit for 2008, lenders are reluctant to make those conforming jumbo home loans and charge higher rates.

Additionally, pure Interest-Only mortgages (not an Option ARM with an interest only option) always carry higher rates than the corresponding fixed-rate standard mortgage.

If on top of that you need a subprime interest only jumbo loan, odds are you won't find one. Most interest only residential jumbo loans will ask for full doc and at least 660 average FICO score.

Recommended helpful present and future homeowners links:
Why: Refinance to a fixed rate loan while mortgage rates are still low.
Link:
Why: Because FHA loans are insured by the US Federal Government they have very competitive interest rates and are easier to qualify.
Link:
Why: Know and protect your credit report and score.
Link: See All 3 National Credit Scores & 3 Reports Instantly, Online & Free
Why: Find your next home and save money.
Link: Search thousands of foreclosures. Free 7-day trial.
Link this QnA Print del.icio.us Digg
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:

Common misspellings: mortage and morgage