Jumbo loans can be structured as either fixed or adjustable rate offerings, and yields tend to be similar to the associated conforming options.
Most insurance policies do not cover earthquakes or flooding by default, so supplemental policies may be needed.
In 2017 homeowners are able to deduct from their income interest expenses on up to $1 million dollars of mortgage debt.
If a married couple had 2 kids an income of $650,000 and were taxed at the marginal 39.6% rate then claiming the mortgage interest deduction on the above mortgage could save them about $10,840.15 in federal income tax. It is also worth noting that a rising rate curve would lift the interest expense on debt & that pending tax reforms may impact how mortgage interest is counted against income.
As of 2017 Congress set the conforming loan limit for single unit homes across the continental United States to $424,100, with a ceiling of 150% that amount in areas where median home values are higher.
The limit is as follows for 2, 3, and 4-unit homes $543,000, $656,350, and $815,650. The limits in the first row apply to all areas of Alabama, Arizona, Arkansas, Delaware, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Michigan, Minnesota, Mississippi, Missouri, Montana, Nevada, New Mexico, North Dakota, Ohio, Oklahoma, Oregon, South Carolina, South Dakota, Texas, Vermont, Wisconsin & most other parts of the continental United States.