Fixed Jumbo Mortgage | Mortgage Rates In Colorado | Colorado Online Mortgage Quote

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Jumbo Mortgages

NEW! - Click here to read about the temporary Colorado Mortgage conforming loan limit increase with the passage of the Economic Stimulus Act of 2008. For standard conforming loan limits, please see below.


Jumbo mortgages are loan amounts in excess of the conforming loan limit set by the congressionally chartered companies, Fannie Mae and Freddie Mac. Any loan in excess of the conforming loan amounts are considered Jumbo Mortgages or "non-conforming." This is true for Colorado Mortgages as well as mortgages in all other states, except as noted below.

Currently, the conforming loan limits are as follows:

First mortgage conforming limits:
  • One-family loans: $417,000
  • Two-family loans: $533,850
  • Three-family loans: $645,300
  • Four-family loans: $801,950
Note: One- to four- family mortgages in Alaska, Hawaii, Guam, and the U.S. Virgin Islands are 50 percent higher than the limits for the rest of the country.

Second mortgage conforming limits:
  • $208,500
  • $312,750 for Alaska, Hawaii, Guam, and the U.S. Virgin Islands

Loan limits adjust every year in accordance with the results -- as determined by the Office of Federal Housing Enterprise Oversight (OFHEO) -- of a national survey of average home prices. The conforming loan limit adjustments are based on the October-to-October changes in the average price of a one-family home, as published by the Federal Housing Finance Board (FHFB).

Jumbo mortgages are available with the same features as conforming loans, such as fixed rate, adjustable rate, interest only, combo's etc. Many Denver Mortgage customers assume that if you have one feature on your jumbo mortgage, you will automatically have another feature. For instance, you can get a Jumbo mortgage that is either fixed or adjustable, and either one could come with an interest only option, or either one could be fully amortized (principal & interest). So you can get a Jumbo Mortgage that is a 30 Year fixed jumbo mortgage which is interest only for 10 years, or you could get the same 30 Year fixed jumbo mortgage that is fully amortized. Again, the term Jumbo mortgage merely refers to the size of the loan and has no bearing as to whether that mortgage is fixed, adjustable, fully amortized or interest only, they are merely features of a Jumbo mortgage.

In general, you can expect to pay slightly higher rates for jumbo mortgages and this is true for Colorado Mortgages as well as mortgages in all other states. The reason for this, is due to the increased risk on the part of the investor.

You can also expect additional limitations on Denver Mortgages that are classified as jumbo mortgages. For instance most Colorado Mortgage lenders (as well as lenders in all other states) will expect higher credit scores for jumbo mortgages. They may also reduce the loan to value that you are able to finance. For example, whereas 100% financing may be available for a conforming loan size for a given scenario, it may not be available for jumbo mortgages.

One reason, that jumbo mortgages are treated differently, is due to the fact that there are less homes that fall into this category. Which means there are less borrowers who are in the market for those home loans. Therefore, if an investor has to foreclose on a jumbo mortgage, it may take them longer to sell that home to get the return on their investment. If they end up holding onto to that foreclosed home longer, they loose money. In order to mitigate this risk, investors implement the above mentioned limitations and/or additional requirements.

Whether your Colorado mortgage is a Jumbo Mortgage or falls below the conforming loan limit, we are here to assist you. Our customers come to us for our low rates and return to us because of our exceptional customer service. We will provide you a true Colorado Mortgage rate quote.

NEW! - Read about the temporary Colorado Mortgage conforming loan limit increase with the passage of the Economic Stimulus Act of 2008

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