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Jumbo
Mortgage Calculator
Interest Only Mortgage Calculator
Risk Factors
Loan Amounts
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Credit Score Requirements
Underwriting
Rates
Jumbo Reverse
Mortgages
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Interest Rates For Jumbo
Loans & Super Jumbo Mortgages
Interest rates are important factors with jumbo and
super jumbo mortgage loans and near the top of the list.
Most lenders will offer two or three products such as:
- 30 Year Fixed Rate
- 5/1 ARM
- 3/1 ARM
Very seldom will a lender offer a super jumbo 30 year
fixed mortgage based upon the interest rate risk
associated with the amount and the time of the loan.
Since jumbo and super jumbo loan amounts are higher and
exhibit more risk characteristics, lenders routinely
charge higher interest rates on super jumbo mortgage
products than they would for a borrower with similar
qualifying criteria in a conventional jumbo loan, in
large part to account for their risk and reduction of
liquidity. Below $1,000,000, super jumbo mortgage rates
are generally within 50 basis points (half of a percent)
of an equivalent jumbo mortgage interest rate, however
above $2,000,000 rates can be 1% to 2% higher or more.
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Amortization Types
While historically super jumbo mortgages were primarily short
term adjustable rate principal & interest mortgages, interest
only options and payment cap or negative amortization loans
(currently called "Option ARM" mortgages) were introduced to the
category in the early 1980s to counteract typical 12% rates of
the time. While 30 year fixed rate mortgages are available in
the super jumbo category, they do not represent the majority of
super jumbo mortgages. Adjustable Rate Mortgages are more
popular amongst super jumbo mortgage applicants than with the
general public, however the greatest increase in originations as
a category has been so called "exotic" Super Jumbo Mortgages.
Offering interest only and negative amortization features, these
loans allow borrowers to choose a lower payment option than a
conventional principal & interest mortgage, often 10 to 20%
lower in the case of interest only amortization and up to 50%
lower or more in the case of deferred interest options.
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