Your Local Michigan Mortgage Specialists
Couple in lakefront home representing Jumbo mortgages in Michigan by Inlanta Grand Rapids

Jumbo Mortgage Options

At Guild Mortgage, we’re honored to serve every segment of the Michigan mortgage market, from first-time buyers to affluent home owners or business professionals relocating to Grand Rapids who would like to trade up to their dream home on Reeds Lake or to purchase a luxury waterfront property on Lake Michigan.  The latter requires special expertise in Jumbo Mortgage financing, which as the name suggests, represents a larger loan typically on high-value homes.

What is a Jumbo Mortgage Loan?

A Jumbo Mortgage Loan refers to mortgage loans above conventional conforming limits. In most places, the conventional loan limits are $453,100. In other places, where the cost of living is higher, the jumbo loan limits are higher.

What are Conforming & Non-Conforming Loans?

Conforming loans follow the terms and conditions set by Fannie Mae and Freddie Mac. The Office of Federal Housing Enterprise Oversight (OFHEO) sets the criteria for what constitutes a conforming loan limit that Fannie Mae and Freddie Mac can buy. Currently, the conforming limit set by OFHEO is $453,100 for most areas of the United States. Loans in excess of $453,100 are considered jumbo mortgage loans.

Jumbo Mortgage Loan Rates

Historically, jumbo mortgage loan rates have been higher than conventional mortgage loan rates. Recently, the gap between conforming and jumbo loan rates has decreased. Jumbo loans have become more affordable.

The Perks of Jumbo Loans

While jumbo loans typically require a higher down payment and have a higher credit score and reserves requirements than conforming mortgage loans, the perks of the jumbo loan are numerous. Jumbo loans have no private mortgage insurance and savvy borrowers are sure to recognize the tax benefits gained by deducting interest payments (on loans up to 1 million dollars).

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