Jumbo Mortgages are Non-Conforming mortgages that exceed the loan limits set by Fannie Mae and Freddie Mac. Because they do not fit into these agencies’ guidelines for mortgage backed securities, they must either be kept by the lending institution in their mortgage portfolio, or be sold to other companies who purchase loans that do not fit conforming guidelines. These loans are generally perceived to have higher risk associated with them and therefore a slightly higher interest rate is charged on Jumbo loans. The degree of difference between Conforming and Jumbo mortgage rates varies depending on market conditions but is usually at least one quarter of a percent. Like Conforming mortgages, Jumbo mortgages are available in a wide variety of loan types, and are available with amortized and interest-only payment options.  As your independent mortgage consultant I can offer you a huge advantage when obtaining a Jumbo loan.  I have access to many traditional as well as non-traditional funding sources providing you with lower rate options and greater flexibility of products with your Jumbo mortgage financing.

Portfolio Mortgages are Non-Conforming mortgages in that they, for any number of reasons, do not conform to the guidelines set by Fannie Mae and Freddie Mac. They may not conform due to loan size, loan product type, amount of cash-out, loan-to-value, income or reserve documentation, credit qualification, or for other reasons. Typically the lender funding a Portfolio Mortgage retains and services the loan in their “mortgage portfolio” for the life of the loan rather than selling the loan on the secondary market. Often Jumbo loans are Portfolio loans, but not all Portfolio loans are Jumbo. One common type of Portfolio Mortgage product is the Payment-Option Mortgage, however this classification of mortgage type has the widest variety of products, loan sizes, and amortization types. Some Portfolio Mortgages offer extremely low interest rates and payments, while others charge higher interest rates, depending on the loan program and risk factors associated.