The term “Jumbo” refers to mortgage loans that exceed the maximum loan amount that Fannie Mae or Freddie Mac will purchase or guarantee. The Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac) purchase and guarantee certain types of mortgages, up to a maximum of $333,700 (2004 limit for single family homes- higher for 2-4 unit properties). Because these agencies are considered to have the backing of the U.S. Government, their bonds and mortgage-backed securities carry little risk for investors. This translates into lower mortgage rates for these “conventional” mortgages.

“Jumbo” mortgages are not purchased or guaranteed by Fannie Mae or Freddie Mac, and therefore carry a higher risk for investors. This higher risk results in a higher interest rate (or points) for “jumbo” mortgage loans. Michael Dunsky has established relationships with multiple private investors for competitive rate jumbo mortgages.

BENEFITS:

As a result of its private investor relationships, Michael has a wide variety of Jumbo loans, including fixed and adjustable rate loans. The secondary market for Jumbo loans has grown, and now offers more diversified programs than ever before. Many of these programs include beneficial features that are not available for conventional loans. Michael Dunsky will explain the features that are appropriate.