Jumbo mortgage loans can handle deluxe 2nd belongings where in actuality the purchase price is higher than the fresh new compliant financing restrictions lay by Fannie mae and you will Freddie Mac computer. These loan designs will often have stricter being qualified requirements and may has actually large rates of interest than compliant funds.

Interest-merely mortgage loans

With an interest-merely mortgage, individuals pay only the attention part of its mortgage payment having a set several months, usually 5–a decade. This can end up in all the way down monthly payments very first, however the money increases as the interest-just months ends up in addition to loan prominent need to be paid.