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The Curious Bag
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A 30-year conventional jumbo ARM is a type of mortgage loan. Used for purchasing real estate, it is a loan in which the lender holds a lien on the property until the terms of the loan are completely fulfilled.
Loan Verbiage
Each word of a loan type describes an aspect of the loan, and when the words are put together, the entire loan definition becomes apparent.
30-year
With a 30-year conventional jumbo ARM, the borrower has 30 years to pay back the loan.
Conventional
A conventional loan is not insured or guaranteed by any government entity, such as the Federal Housing Administration or the Veterans Administration. In many cases conventional loans are fixed rate mortgages.
Jumbo
A jumbo loan is a loan that exceeds the amount that Fannie Mae or Freddie Mac will guarantee or buy. Fannie Mae and Freddie Mac control the secondary mortgage market, where mortgages are sold to other banks and financial institutions.
ARM
ARM stands for adjustable rate mortgage. With an adjustable rate mortgage, the interest rate will change periodically at agreed-upon points throughout the life of the loan, in order to adjust to market interest rates.
Source:
Adjustable Rate Mortgages (ARMs)
Jumbo Loan Law & Legal Definition
Resource:
Home Buying Institute
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