Conventional loans have limits on how large they can be. In Utah county, conventional loans go up to $510,400. In Salt Lake county, those limits are currently $600,000. If you want to purchase a home that is over this price range, you’d need what’s called a jumbo loan.Many people buy homes over that limit using a larger down payment so that they can still use a conventional loan. If, however, you want to get a loan amount over that conventional amount and can’t lower the loan amount with a large down payment, you need a jumbo loan. These loans have different rules that go along with them and typically have much higher interest rates.
However, the interest rates on these loans has just dropped! I recently had a lender friend tell me he had approved someone for a jumbo loan for 3.75%! Those are almost unheard of. If you’re looking to sell a home in a lower price point and upgrade, now is the time! Feel free to contact me if you’re looking to make a change!
