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Jumbo Loans

Loans which are more than the limits set by Fannie Mae and Freddie Mac are called jumbo loans. Since these jumbo loans are not funded by these government sponsored entities, they usually carry a higher interest rate and some additional underwriting requirements. A strategy to lower your overall interest payments if your purchase or refinance balance is above $417,000 is to use a combination of both first and second loan money, referred to as an 80/10/10, 80/15/5 or 80/20. Every situation is different, ans many do not make sense, but it is one more option to consider.

In addition to common loan structures such as fixed rate, adjustable rate and balloon loans, Fannie Mae and Freddie Mac also have loan programs for low to no down payments for first time home buyers, community lending and affordable housing initiatives for low income resident, construction loans to bridge the costs of creating a primary residence, home improvement loans and reverse mortgages.