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Jumbo Loans

Jumbo loans are harder to qualify for and more expensive than conventional loans that have a loan limit of $417,000 (including FHA).  The chart below shows the maximum sales price given some of the standard down payments.  Closing costs are not considered below.

% Down Loan Limit Max Price Down Payment
3.5% $ 417,000.00 $ 432,124.35 $ 15,124.35
5.0% $ 417,000.00 $ 438,947.37 $ 21,947.37
10.0% $ 417,000.00 $ 463,333.33 $ 46,333.33
20.0% $ 417,000.00 $ 521,250.00 $ 104,250.00

The rates I saw today had a .875% spread between a 30yr conventional loan and a jumbo loan up to $600,000 (4.875% v. 5.75).  Payments based on that would be $2206.80 for a $417,000 loan versus $2433.50 for a $417,001 30yr jumbo.  That extra $1 loan amount is an additional $226.70 per month for 360 months ($81,612)!  Note that the FHA rate is higher than a conventional loan, not everyone qualifies for a given rate and there are other factors and costs in acquiring a loan.

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