Risk
Jumbo mortgage loans are a higher risk for lenders. This is because if a jumbo mortgage loan defaults, it may be harder to sell a luxury residence quickly for full price. Luxury prices are more vulnerable to market highs and lows in some cases. That is one reason lenders prefer to have a higher down payment from jumbo loan seekers. Jumbo home prices can be more subjective and not as easily sold to a mainstream borrower, therefore many lenders may require two appraisals on a jumbo mortgage loan.
Read more about this topic: Jumbo Mortgage
Famous quotes containing the word risk:
“I’m a very smart guy. I haven’t a feeling or a scruple in the world. All I have the itch for is money. I am so money greedy that for twenty-five bucks a day and expenses, mostly gasoline and whisky, I do my thinking myself, what there is of it; I risk my whole future, the hatred of the cops ... I dodge bullets and eat saps, and say thank you very much, if you have any more trouble, I hope you’ll think of me, I’ll just leave one of my cards in case anything comes up.”
—Raymond Chandler (1888–1959)
“I saw the man my friend ... wants pardoned, Thomas Flinton. He is a bright, good-looking fellow.... Of his innocence all are confident. The governor strikes me as a man seeking popularity, who lacks the independence and manhood to do right at the risk of losing popularity. Afraid of what will be said. He is prejudiced against the Irish and Democrats.”
—Rutherford Birchard Hayes (1822–1893)
“If you think it will only add one sprig to the wreath the country twines to bind the brows of my hero, I will run the risk of being sneered at by those who criticize female productions of all kinds. ...Though a female, I was born a patriot.”
—Annie Boudinot Stockton (1736–1801)