Jumbo Fixed-rate Home Loans
Fixed rate mortgage loans are available for borrowers who prefer a set payment and do not want to be concerned with periodic changes to the LIBOR, MTA, T-Bill, or COFI indices affecting their rate every six months or year depending on the ARM loan type they selected.
30 Year Fixed Jumbo
A 30-year fixed jumbo is a mortgage loan that will be paid back each month for 30 year term at a fixed interest rate. The amount of a jumbo mortgage will be over the conforming loan limits set by Fannie Mae and Freddie Mac loan. As of 2019, any loan over $510,400 is a jumbo loan. If you need a loan in California high cost counties, you may not reach a jumbo category until the loan is over $765,600.
15 Year Fixed Jumbo
A 15-year fixed jumbo is a home loan that must be repaid in 15 years at an interest rate that never changes. Typically, a 15-year fixed is .375-.50% less than a 30-year fixed. The 15-year fixed helps you build equity faster but the payment is much higher than a 30-year.
Those aren't the only fixed terms avaiable. Actually, you may qualify for a term you prefer such as 25, 27, 28, 18 years, etc. However, the payment will be amortized for that particular term. For example, if you get a 27 year fixed loan, your payments will be amortized for 27 years.
Fixed rate loans are at all-time lows and very attractive for borrowers for virtually any type of home. You should strongly consider a 30-year fixed, 20-year or 15-year fixed jumbo.
UPDATE: Jan. 9, 2020. If you want to keep your monthly payment low, you may be interested in an interest only jumbo mortgage. There is a 40-Year fixed rate loan with an option for 10 years interest only as well as ARMs.
Some borrowers may prefer to get a slightly lower rate using a "fixed-rate ARM" for 7 or 10 years with 30 year amortization payments or a balloon payment due in 7 and 10 years. This is more suited to those knowing they will move or refinance before the 7 or 10-year periods elapse.
Most borrowers who select an ARM pick the program where it converts to a true adjustable rate product (index + margin) at the end of the fixed term.