Museum Fish Blog

Loans that are higher than the cap set my Freddie Mac and Fannie Mae are called jumbo loans. Jumbo loans can sometimes have higher interest rates, and may have 40 year terms versus 30 years of a normal mortgage. They are also a little harder to get approved for. However, lenders have learned a way around the jumbo loan. They split up the jumbo into smaller, more conventional loans to get the lower interest rates and the shorter terms. Beware though, this does not mean your mortgage will be in smaller chunks, you will still have to pay the terms of your mortgages.