Just What Is A Super Jumbo Mortgage

Just what is a super jumbo mortgage and how do you know that you qualify for one? Which amounts of a mortgage loan or mortgage refinance do super jumbo mortgage loans qualify under? Super jumbo mortgages can differ depending on the internal definitions of the finance company that you are applying at, and so many not go by the definitions that we list here. However, they are generally very close and so the meaning of a jumbo mortgage and a super jumbo mortgage here should serve you well as you examine your own mortgage loan and decide which category it fits into.

First, let’s talk about jumbo mortgages. A jumbo mortgage is one that is above the amount set by the two big lending companies, Fannie Mae and Freddie Mac. They determine the amount that makes a jumbo mortgage. As of 2009, the limit is$625,500 which is lower than the previous year’s limit of $729, 750, which was instituted because of the Economic Stimulus Act. The average amount is $417,000 for a jumbo mortgage loan. If you are buying a home that is valued around this amount and cannot make a large down payment you may have to go with a jumbo mortgage.

A super jumbo mortgage is one that exceeds the maximum amount of a jumbo mortgage loan, which is generally around $650,000. Super jumbo mortgage rates are also higher right now because of the stimulus and harder to qualify for obviously. Getting a home with a super jumbo mortgage is harder than getting a regular jumbo mortgage and much harder than getting a conventional mortgage loan and may require a very large income, or a high down payment to qualify, because the payments will be so much higher.

One thing that you will notice is that jumbo and super jumbo mortgage lenders prefer to have a larger down payment on these type of mortgages. It is difficult for lenders to justify taking a risk on jumbo and super jumbo mortgage because the market fluctuates and it can be hard to sell them right away for a price that will be fair to the lenders if they foreclose. You may have to make a larger down payment on super jumbo mortgages and no down payment programs are virtually nonexistent, so you will have to have money saved if you want to finance a large or high priced home.

It used to be that jumbo mortgages were only for the rich or luxury homes but increasingly more and more people are applying for jumbo or super jumbo mortgages to get a decent family home because housing prices continue to rise all the time. This leads to an increase in the limit of jumbo mortgages and super jumbos eventually, but the rates are usually behind the increase in housing prices. Also, the area that you live in may have high median house prices which can lead to applying for a jumbo mortgage for a regular home.