Jumbo loan interest rates Meaning and Definition
Jumbo loan interest rates
Pronunciation
/ˈdʒʌmboʊ ˈloʊn ɪnˈtɪrɛst ˈreɪts/
Part of Speech
Noun
Definition
A type of mortgage loan with an original loan amount exceeding conforming loan limits, typically requiring a higher interest rate and a larger down payment.
Etymology
The term “jumbo loan” originates from the 1970s, when banks began using the term to describe large loans that exceeded conforming loan limits, which were originally set at $100,000 in 1974.
Usage Notes
Jumbo loan interest rates can vary depending on the borrower’s credit score, loan-to-value ratio, and other factors. It’s essential to understand the interest rates and terms before applying for a jumbo loan.
Cultural References
While jumbo loan interest rates are not often referenced in popular culture, they can be found in finance-related articles, books, and documentaries.
Idiomatic Expressions or Phrases
- “Jumbo loan” is often used to describe a large loan, but it’s essential to note that the term usually refers to loans exceeding conforming loan limits.
Related Words or Phrases
- Conforming loan limits
- Mortgage
- Loan
Collocations
- Jumbo loan interest rates are often associated with
- High-income individuals or businesses
- Investment properties
Frequency of Use
Jumbo loan interest rates are relatively infrequent in everyday conversation, as they are typically only relevant for borrowers seeking large loans.
Common Misspellings
- Jumbo loan intrest rates
- Jumbo loan inerest rates