What Is a Jumbo Mortgage?
Depending on the price of the house you are buying, there are generally three different types of mortgage categories you may fall into. A conventional mortgage is generally for houses priced under $650,000. A conventional high balance mortgage is for homes priced between $650,000 and $850,000. Generally, you would fall into the jumbo mortgage category if your home is priced at or above $850,000. Jumbo mortgages typically will require the buyer to put more money down and have more reserves in the bank. Because they are a more expensive asset, banks consider jumbo mortgages to be riskier loans than conventional and conventional high balance loans.
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