Jumbos Still Cheaper Than Conforming Mortgages
April 01, 2014 at 07:12 AM EDT
For years mortgage rates on "jumbo" loans have been higher than for traditional (conforming) mortgages. Since jumbo loans were larger than the upper limit permitted to be packaged and sold to Fannie and Freddie, banks would typically charge a premium for "illiquidity" on these products.