To answer this question, we first need to understand what makes a loan a Jumbo Loan or a Jumbo Mortgage. Jumbo loans are loans with higher dollar amounts which may not be sold to Fannie Mae or Freddie Mac. These types of loans are known as non-conforming loans. In Missouri, the current jumbo home loan conforming loan limit is $417,000 for the year 2013.

Any loan that exceeds this limit is considered to be a Jumbo loan. Like conforming loans Jumbo loans can be packaged and sold to Wall Street but they often come with a higher rate because they are considered riskier. If you work with a major lender such as Chase, Citi, Wells Fargo, or a similar lender that sells a majority of their loans to Wall Street you will be subject to certain restrictions and receive a mortgage loan that factors in Wall Street’s profits.

However, if you bypass a large bank and work with a niche lender you won’t be subject to these same issues. Niche lenders hold loans on their own books and collect the interest for the life of these loans. Because these loans are not being sold lenders can set their own rules, rates and fees which are often more favorable. The best jumbo mortgage rates are often found with these lenders who specialize in jumbo home loans.

Find out if an Jumbo loan is right for you. Take a moment to fill out our quick application or give us a call to speak with an experienced Mortgage Consultant today.