By David Harmuth
Nov 18, 2012
Q: What should a homebuyer know before taking on a jumbo mortgage?
A: A jumbo mortgage is a mortgage that is used for higher-priced properties. This limit is $417,000 in most areas of the country, except those deemed as high-cost housing areas.
In high-cost areas, the housing limit is expanded as high as $625,500. In Fairfield County, the limit is currently $601,450 for single-family homes. This amount is periodically reviewed based on housing cost changes.
Jumbo mortgages are common in the Fairfield County real estate market due to our higher average home prices. Customers commonly use a jumbo mortgage if they are purchasing at a higher price or if they want to have a larger mortgage for interest deduction. So, it is not your standard mortgage, but a larger mortgage.
People choose one of these kinds of mortgages usually because of a larger deductibility or to get into a large home. Jumbo mortgages means more house; not necessarily just a large home but also greater amenities and that sort of thing.
A Realtor can be in paired with a mortgage lender or mortgage officer to help a homebuyer through this process.
— David Harmuth, Coldwell Banker Residential Brokerage, 203-368-8676