As a general rule, you can expect to make a down payment of at least 10% of your jumbo loan. Some lenders may require a minimum down payment of 25% or even 30%. While a 20% down payment is a good reference point, it's always best to talk to your lender about all the options. Some lenders may allow a down payment as low as 5% or 10%.
In this case, you'll likely accept a higher interest rate to help offset the risk. In addition, if you take out a giant loan with a down payment of less than 20%, you'll need to pay private mortgage insurance (PMI). Giant mortgage rates are typically about half a percent higher than those of a comparable non-jumbo mortgage. They can also offer the most cost-effective mortgage solutions for the giant loan market, says David Yi, president of Providence Mortgage.
Residential mortgages from banks and other giant lenders, which free up liquidity to lend more mortgage loans.
