What is a Jumbo Mortgage?
If you're in need of a large mortgage loan, a jumbo mortgage that's higher than the conventional mortgage amount may be right for you. When you get a mortgage there are some options to consider. One of those options is which kind of mortgage you’re actually going to apply for. Most people choose a conventional loan, but if you’re trying to borrow a large amount of money you may not be able to get that type of mortgage. Instead, you may need a jumbo mortgage, which means that you’ll be borrowing more than $417,000. In some parts of the country where prices are very high, you’ll need to borrow more than $625,500 in order to qualify for a jumbo loan. But what is a jumbo mortgage, really, and how can it help you get the house you need? Will it cost you more in interest and other fees? The more you know about your options, the more informed decision you can make.
What Happens When Your Loan Is Sold?
Once you close on the home, it’s common for your loan to be sold. Don’t worry, this doesn’t mean anything will change. Banks will often sell mortgages to other lenders to free up money. This can happen multiple times during the duration of your loan or not happen at all.