A mortgage with a loan amount exceeding the conforming loan limits set by the Office of Federal Housing Enterprise Oversight (OFHEO), and therefore, not eligible to be purchased, guaranteed or securitized by Fannie Mae or Freddie Mac. OFHEO sets the conforming loan limit size on an annual basis.
Also referred to as “Jumbo Mortgage”.
Investopedia Says… Jumbo loans are often securitized by institutions other than Fannie Mae or Freddie Mac. These securities carry more credit risk than those issued by Fannie Mae or Freddie Mac, and therefore, trade at a yield premium which translates into slightly higher interest rates. However, in recent years the spread in interest rates between jumbo and conventional mortgages has been reduced.
For More information about Jumbo Loans in the Maui Real Estate Market Call:
Fran Mitsumura with First Hawaiian Mortgage at 661-8886 or
Ryan McNally with Countrywide Mortgage at 872-2420.
Micheles Favorites Maui Golf Courses:
Posted in Maui Real Estate | Tags: jumbo home loans, Maui Real Estate
