30-Year Fixed Jumbo Mortgage
Designed for larger loan amounts, this mortgage offers long-term stability for luxury property investments.
The 30-year fixed jumbo mortgage offers homeowners the stability of a fixed interest rate along with higher loan amounts above conventional conforming loan limits. This type of jumbo loan is ideal for luxury home buyers or those looking to refinance in high-cost markets.
What is a Jumbo Mortgage?
Jumbo mortgages are home loans that exceed the maximum conforming loan limits set by the Federal Housing Finance Agency each year. In most U.S. counties, the 2023 limit is $726,200. Loans above that amount are considered jumbo mortgages.
Jumbos allow borrowers to finance pricier home purchases with a mortgage when they otherwise may need to take out multiple loans. These larger mortgages come with higher income and credit requirements compared to conforming loans.
Benefits of a 30-Year Fixed Jumbo Mortgage
- Higher Loan Amounts – Jumbos provide financing above conventional limits for luxury properties or high-cost areas.
- Fixed Interest Rate – An unchanging rate provides predictable payments that stay the same for 30 years.
- Amortization Schedule – Payments applied to interest and principal gradually build equity over the full term.
- Lower Rates Than HELOCs – Interest rates on jumbo mortgages are typically lower than home equity lines of credit.
- Tax Benefits – Mortgage interest and property taxes are tax deductible, which HELOC interest is not.
- No Home Equity Requirement – Jumbos can be used for purchases without needing existing home equity.
Who is a Jumbo Mortgage Right For?
30-year fixed jumbo mortgages are suitable for certain high-income borrowers:
- Luxury homebuyers – Jumbos accommodate financing multi-million dollar properties.
- Those moving to high cost areas – Prices have risen above conforming limits in many markets.
- Borrowers with prime credit – Requirements are higher for jumbos vs. conforming loans.
- Self-employed borrowers – Non-conforming loans use alternative income calculations.
- Those with substantial assets – Larger down payments or reserves are often needed.
- Homeowners doing cash-out refis – Jumbos allow tapping higher home equity amounts.
Jumbo borrowers still benefit from the stability and payment control offered by a 30-year fixed term. This helps balance the larger loan amounts with the budget predictability many homeowners find essential.