Ameristar Mortgage Blog

Illinois jumbo loans and Wisconsin jumbo mortgage loans, also called non-conforming loans, are mortgages with loan amounts greater than the conforming loan limit. Jumbo loans are often securitized by institutions other than Fannie Mae or Freddie Mac. They traditionally were viewed as having slightly higher risk than the “conforming” loans of up to $417,000 that were bought and securitized by Fannie Mae and Freddie Mac.

Visit our website at www.AmeristarMadison.com for additional information on our jumbo mortgage program.

The mortgage meltdown and subsequent credit crunch created an unprecedented interest-rate spread between conforming loans (those with balance up to $417,000 purchased by Fannie and Freddie) and jumbo loans in excess of $417,000. While rates on conforming loans have dropped to reasonable levels — about 6 percent for a 30-year fixed rate with no points, rates on jumbo loans remained high.

This summer, when the private, secondary mortgage market no longer had an appetite to invest in these loans due to questions about risk, jumbo loans got much more expensive for borrowers. Though jumbo loans haven’t been a big problem, investors are reluctant to buy any mortgage debt not backed by Freddie Mac and Fannie Mae.

Contact us to learn more about Wisconsin and Illinois home loans, jumbo loans or learn more about any loan program listed on our website (www.AmeristarMadison.com).

Ameristar Mortgage offers the following programs for your jumbo needs:

• General Jumbo Loan program information
• Jumbo VA Loans
• Jumbo Bank Statement Loans

Contact Ameristar Mortgage for additional information on our Wisconsin and Illinois jumbo programs:

Dennis Hardy
Local: (608) 242-0826 x23
Toll Free: (877) 240-5840
dennis.hardy@ameristarmadison.com
www.AmeristarMadison.com

Visit my blog at http://www.ameristarmadison.com/blog/

Blog entry: http://www.ameristarmadison.com/blog/content/illinois-jumbo-loans-wisconsin-jumbo-mortgage-loans/