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.

Mortgage rates hit their lowest since 1955. Ask the home loan experts we recommend Quicken Loans how to take advantage of them.
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