A jumbo loan is considered a non-conforming loan. Conforming mortgage loan programs have perceived less risk by lenders and have lower interest rates. Most mortgage loans that are done by lenders are conforming loans. Jumbo loans are a small percentage of the mortgages that are done.

Although most mortgage loans that are done in the US, are smaller loan amounts than those limits set by Fannie Mae and Freddie Mac for jumbo loans, in California, home prices are so high, that there are many jumbo home loans done there.

If you live in California and/or are looking to get approved for a jumbo loan, the internet is a great place to apply to get a jumbo loan for a few reasons. First of which is that there are so many lenders online competing for your business, that lenders are forced to offer their lowest possible rates in order to get your business. For example, a local broker, who has a steady client base, may not be motivated to offer the lowest rate or the lowest closing costs, when the competition is only local. However, when you have the largest group of lenders online competing for your business, you can get a much better offer.

Where is the best place to apply for a jumbo loan? There are many mortgages companies online who can provide you quotes from multiple lenders. These companies will be able to provide you with quotes for usually up to 4 different lenders. This is a great way to make sure to get competitive offers. However, make sure you still ask each competing mortgage lender about the points they will charge, their closing costs and any other fees, to make sure you are getting the best loan you can.

Getting the lowest interest rate does not always make the loan you want, the best deal. The lender can charge more in other places that you might not catch until closing.
About the Author

Carrie Reeder is the owner of http://www.abcloanguide.com, an informational website about various types of loans. To view our list of recommended lenders online for jumbo loans, visit this page: http://www.abcloanguide.com/mortgageloans.shtml

As you may know, I have a very deep passion for real estate and mortgages.  In fact, this website is a true labor of love for me.   As publisher, one my many duties is to review the many books, programs and courses about real estate and mortgages that are on the market today.  I’ll be honest with you.  Most of them are garbage.  (Although I do strongly recommend the programs in the “Must Have” box above).  But, let me tell you, when I came upon the following headline, I new I found a winner… “Learn How To Quickly Build At Least $40,000 Worth Of Home Equity And Pay Your Mortgage Off In 10 Years Or Less” -Without Making Biweekly Mortgage Payments-Or Changing Your Current Mortgage. Now, the reason I knew it was a winner was because of the name behind the headline.  Craig Romero.  Many consider Craig to be one of the true geniuses in our field.  I have a lot of respect for him, and I urge you to drop what you are doing right now and click the link below...