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Five Star Mortgage, LLC
2280 Satellite Blvd.
Duluth, GA 30097
OFFICE 770.495.3516
FAX 770.495.3528
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Jumbo Loan
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A Jumbo Loan is any first mortgage in which the starting principal balance is over the conforming limit of $417,000. Jumbo Loans can be full amortized fixed rate mortgages, adjustable rate mortgages or interest only loans. A Jumbo Loan typically carries an interest rate that is 1/8 to 1/4 of a percentage point higher than conforming loans. There are ways to circumvent paying the higher interest rate. One of the most common is to utilize a piggyback loan to reduce the principal balance to an amount below the $417,000 threshold. Even though the borrower would have two payments, in many situations the use of a piggyback loan will also result in a lower monthly payment due to the lower interest rate on the first mortgage.
Jumbo Loans can be used for either the purchase of a home, for refinancing a current mortgage or even for the purchase of a second home or vacation home. It would make sense for you to meet with one of our mortgage specialists to discuss the various options available to you. After all we are...At Your Service.
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