Below is our FRM super jumbo mortgage calculator. Click on the other tabs above to switch to the super jumbo ARM calculator or to view current local super jumbo loan rates.
If you want to look exclusively at the principal & interest portion of your loan, you can use the following calculator to compare fixed-rates, ARMs & I-O only payments side-by-side.
If you want to look exclusively at the principal & interest portion of your loan, you can use the following calculator to compare fixed-rates & ARMs side-by-side.
The following table lists current rates for loans in your local area. You can adjust the downpayment amount & loan amount to further customize the displayed rates.
Fannie Mae & Freddie Mac are government-sponsored enterprises which provide liquidity to the national mortgage market by buying mortgages and keeping them in their portfolios or packaging the residential mortgages into mortgage-backed securities (MBS) sold to secondary investors. They have limits on the size of the residential mortgages they package into securities. Jumbo mortgages are loans which back home purchases where the amount financed exceeds the conforming mortgage loan limit. The conforming loan limits are listed below.
As of 2019 Congress set the conforming loan limit for single unit homes across the continental United States to $484,350, with a ceiling of 150% that amount in areas where median home values are higher. The limit is as follows for 2, 3, and 4-unit homes $620,200, $749,650, and $931,600. The limits are higher in Alaska, Hawaii, Guam, the U.S. Virgin Islands & other high-cost areas. Loans which exceed these limits are classified as jumbo loans.
The limits in the first row apply to all areas of Alabama, Arizona, Arkansas, Delaware, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Michigan, Minnesota, Mississippi, Missouri, Montana, Nevada, New Mexico, North Dakota, Ohio, Oklahoma, Rhode Island, South Carolina, South Dakota, Texas, Vermont, Wisconsin & most other parts of the continental United States. Some coastal states are homes to metro areas with higher property prices which qualify the county they are in as a HERA designated high-cost areas.
The limits in the third row apply to Alaska, Guam, Virgin Islands, Washington D.C & Hawaii.
|Continental U.S. Baseline||$484,350||$620,200||$749,650||$931,600|
|Designiated High-cost Areas||$726,525||$930,300||$1,124,475||$1,397,400|
|Alaska, Hawaii, Guam & U.S. Virgin Islands||$726,525||$930,300||$1,124,475||$1,397,400|
Jumbo loans exceed the conventional conforming mortgage limits.
Super jumbo loans are loans above this threshold, but different lenders in different parts of the country use different dollar denominations to refer to super jumbo. In the midwest & across most of the continental United States where homes are cheap the amount used to refer to "super jumbo" is typically $1,000,000 to $1,500,000. However, in Manhattan, spending $1,000,000 might not buy much more than a closet. In wealthier areas mortgage lenders might refer super jumbo as loans above $2,000,000 with caps ranging up to $10,000,000 to $20,000,000 and beyond.
Across the broader real estate market, at the end of 2018 roughly 10% of new refis & 6% of new home purchase loans were structured as traditional or hybrid ARM loans, with the remainer of the market using fixed rates. Fixed rate home loans simply dominate the market.
Compared to the typical homeowner, high-wealth families are more likely to use adjustable-rate loans to lower their short term interest expenses. CoreLogic highlighted how prevalent ARMs are for wealthy families:
ARMs remained the most popular option for those financing luxury homes. Roughly 76 percent of borrowers refinancing ARM loans opted to go with another ARM, and 31 percent of the fixed-rate borrowers switched to an ARM.
Due to the size of the loans, lenders exercise increased caution & greater scrutiny of borrowers. Great credit scores are a must. Most lenders will typically require at least a 10% or 20% down payment on large loans & proof of significant financial assets. Funding approval of high net worth individuals is done on a case-by-case basis. Interest rates also typically rise significantly with the amount borrowed. The spread over conforming mortgage rates might be close to a half percent for loans at or below $1.5 million while rising to a percent or two for loans above that level.
Loans can be structured as fixed-rate mortgages, ARM loans, hybrid loans or even negative amortizing option ARMs. Some people in finance get paid large annual performance bonuses or rely on long-term capital gains, prefering to keep their wealth working for them throughout the year and make lump sum payments on their home loan. Specialty mortgage brokers are frequently used to help match prospective home buyers with investment banks & other sources of private mortgage capital. Since these sorts of loans have limited liquidity and an exotic structure, they often tend to be pro-cyclical with the economic cycle. When downturns happen loose conditions can tighten suddenly with adjustable rates quickly increasing to compensate for the lower property equity & higher risk of default. Maintenance & property taxes are also major issues for owners of expensive homes. Owning a $20,000,000 home in New York City could lead to spending over $500,000 a year in property taxes.