Michigan mortage explanation
The current jumbo loan limit is $417,000. Jumbo Loans are what they call non-conforming loans. They do not fit into Fannie Mae or Freddie Mac guidelines because of the loan size. Many homeowners don’t realize that when they borrow over the jumbo loan limit the interest rates jump dramatically.
What you have to realize is that the lender is taking a bigger chance so they want to be compensated for the jumbo loans. So if you are buying a Metro Detroit home over $535,000 and put the required 20% down be prepared to pay a higher rate.
My Quote of the day:
“Holding on to anger is like grasping a hot coal with the intent of throwing it at someone else; you are the one who gets burned.” – Buddha