Jumbo Loans

What are Jumbo Loans?

Jumbo loans are mortgage loans defined as any single loan amount that is over the conforming loan ceiling- usually set by the FHFA (Federal Housing Finance Agency) – and which currently stands at $417,000 for a unit property in the contiguous U.S. This means that if your loan amount is anything over $417,000, it is considered a jumbo loan. However, different jumbo loan limits exist depending on where the property is located and the number of units on the property. For instance, for properties situated in the contiguous U.S., including Puerto Rico and D.C., jumbo loan limits for 1,2,3, or 4 unit properties are greater than $417,000, $533,850, $645,300, and $801,950 respectively. In the U.S. Virgin Islands, Hawaii, Guam, and Alaska the jumbo loan limits tend to be slightly higher i.e. for 1, 2, 3, or 4 unit properties, they are greater than $625,500, $800,775, $967,950, and $1,202,925 respectively.

jumbo loansFrom the foregoing, it is quite obvious that you can get quite a large loan amount in some parts of the country without having to enter jumbo loan territory. But more importantly, jumbo loans cannot be sold to Freddie Mac or Fannie Mae, so outside investors will have to buy these loans on the secondary market in scrutinized bundles, or lenders will simply keep them in their books.

Typically, jumbo loans carry a considerably greater risk for various reasons. Along with fewer available investors and larger loan amounts financed, they tend to be tied to luxury homes, which are known to be harder to dispose off in a short period of time, mainly due to the general lack of prospective wealthy buyers in the market. Also, during market shifts, luxury residences are more prone to shifts in valuation than their moderately priced counterparts.

Jumbo loans are characterized by higher mortgage rates

Because of the accompanying risks, jumbo loans carry slightly higher rates, although the difference is slight- it could be between .25% and .5% higher. Alternatively, borrowers stand to lose any lender credit that may be offered for conforming loan amounts.

A majority of mortgage lenders often offer similar loan schemes for jumbo loans as happens with conforming loans e.g. interest-only home loans, ARMs, and fixed-rate loans. In fact, borrowers may even be able to secure zero down jumbo mortgages without much of a fuss as most lenders are nowadays able to provide 100% financing on deals with a limit of about $1.5 million.

Super Jumbo Loans

Some types of jumbo loans are also variously referred to as super jumbo loans, much to the excitement of loan officers and mortgage brokers who mistakenly think that they have a mega deal on their hands (and huge dollar signs in their eyes). While there may be some truth in this argument, true super jumbo loans are those whose amounts are above $650,000, and range up to $20 million or higher. This term, however, is often used incorrectly on a daily basis depending on the state where the overzealous officer resides. Remember, you can easily break up your super jumbo loan into a first and second mortgage in order to avoid paying more for it. Just ensure that the combined rate will ultimately be cheaper than what it otherwise would have been.

PayDay Loans

Payday Loans are there for you during rough financial times. When an unforeseen bill comes up that needs to be paid almost immediately, you can look to payday loans to provide you with the means to apply for your payday cash loan needs. Whether it is a family emergency, a household emergency or a car repair that needs to be taken care of, payday loans can help you in all financial emergencies. Payday loans are an excellent way to cover many expenses you may have if you ever run out of money from your normal paycheck. Although it is crucial to deal with your bill payments, sometimes situations come up where you have to throw down your money without even thinking. In these cases, payday loans come very much in handy. Millions of people see the value of payday loans when it comes to covering many of their important costs and avoiding the nasty charges and increased rates of interest on credit cards and loans from missing payments. Most significantly, tarnished credit is something you want to keep away from and payday cash advances help you do so.

What are these payday loan advances?

payday loansPayday loan advances are smaller, short-term loans that help to bridge a financial gap many persons have between paydays. Every payday loan has a small fee attached to it depending on the amount of time it is borrowed for and depending on the company’s normal charges. It is best to do your research if you want to find the lowest fees in the payday cash advance industry. The average payday loan is $290 but can range from $100 to over $1000 depending on the company and depending on what you qualify for. The average time a person borrows a payday loan is for 11 days. Payday cash advances are usually paid back on the borrower’s next payday. Although, if you feel as though you still aren’t financially sound by your next payday, you can do what is called a “re-loan” which allows you to re-borrow the cash advance loan as many times as you feel you need to until you’re financially secure. Most payday loan companies allow you to do this. There are many conveniences that payday loan companies offer and that is why millions of people use them on a regular basis.

Where can I acquire a payday loan advance?

You can acquire a payday loan advance either in-person or online. It is important to be aware of the qualifications and required documents before applying for a payday cash advance. It is even more important to do so before going out to apply in-person due to the inconvenience of getting turned away for not having the proper documentation. This is why applying online through the world-wide-web is much more convenient. The quickest and easiest online services to apply with can be found here on Superior Jumbo Loans. Superior Jumbo Loans recommends services that provide you with same-day cash advance approval, faxless payday cash loan options, very low industry rates on fees and friendly customer service.

Other Services Featured Here

Superior Jumbo Loans not only provides you with information about jumbo loans and payday loan advances but also provides financial market and financial trading information. We provide this information for those what may wish to augment their current income by learning to trade. If you can enhance your income by financial trading, you may not have need to take out another payday loan.