When buying a home, many people do not realize they will be responsible for the downpayment on a home AND for closing cost. Closing cost consist of several fees associated with the the purchase of a home that can range from 2-7% of the price of a home.
Jumbo financing consists of a mortgage loan in an amount above conventional conforming loan limits. Currently that limit is set at $417,000. These loans do not “conform” to Fannie Mae (FNMA) or Freddie Mac (FHLMC) loan guidelines.