jumbo mortgages
16. Jumbo mortgages
Jumbo mortgages are those that exceed the Fannie Mae limit. That means Fannie Mae doesn’t provide a market for them, so they are less marketable. The penalty here amounts to a higher rate, typically around .5%. As of July 1999, the Fannie Mae limit for mortgages is $240,000. Fannie Mae raises this limit from time to time. If you took out a jumbo mortgage when you bought your home, and some time has passed, you may benefit from refinancing if you have paid down the principal and the Fannie Mae limit has raised above your current mortgage principle balance. Loans below the Fannie Mae limit are called conforming loans. Loans above are called non-conforming or Jumbo mortgages.
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