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Interest Only Mortgage Calculator
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Risks for large jumbo loans are mitigated when the loans are put into a mortgage backed security or if the loan(s) are participated out to other lenders or investors. Securitization of jumbo and super jumbo mortgages has not met with the same success as conventional mortgages. If lenders can spread the risk through securitization or participations, it allows them to free up capital and liquidity to make other jumbo loans. Mortgage market liquidity has remained stressed during the past few years as lenders and investors have avoided riskier mortgage products that don't have any kind of government guarantee associated with the loan. The collateral for jumbo mortgage loans is predominantly luxury real estate properties. These luxury properties are more difficult to sell in foreclosure based upon the amount of money required to purchase them and traditionally stay in a bank or lender's real estate owned (REO) portfolio longer than other assets.
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