Jumbo Loans exceed the maximum loan amounts established by Fannie Mae and Freddie Mac conventional loan limits. Rates on jumbo loans are typically higher than conforming loans. Jumbo Loans are typically used to buy more expensive homes and high-end custom construction homes.
We at Highlander Mortgage are always looking for the least-costly alternative for our clients. This is why, when a client is looking to purchase or refinance with a jumbo loan, we recommend getting a conforming first lien and a large second lien, if it makes financial sense to do so. We look at the interest rate of a jumbo loan and compare that to the blended rate of getting a first and second lien with little or no additional down payment. If it happens that the blended rate of the first and second lien is lower than the rate on the jumbo loan, we recommend getting that first and second lien combo which can save you thousands in interest over the life of the loan. It is a simple restructuring of the loan which very few lenders out there are offering.