Finance
A 'jumbo loan' in Arizona is a mortgage that:
AHas terms longer than 30 years
BExceeds the conforming loan limits set by FHFA and cannot be purchased by Fannie Mae or Freddie Mac✓ Correct
CHas a variable interest rate
DRequires no down payment
Explanation
A jumbo loan exceeds the conforming loan limits established by FHFA (varies by area, typically $766,550 in most Arizona counties in 2024). Since it doesn't conform, it cannot be sold to Fannie/Freddie and typically has stricter requirements.
People Also Study
Related Arizona Questions
- Private mortgage insurance (PMI) is typically required on a conventional loan in Arizona when the loan-to-value (LTV) ratio exceeds:Finance
- An Arizona real estate licensee who is also a mortgage loan originator must comply with licensing requirements under:Arizona License Law
- A buyer in Arizona purchases a home for $420,000 with a 20% down payment. What is the amount of the buyer's mortgage loan?Real Estate Math
- A buyer in Arizona obtains a $320,000 adjustable-rate mortgage (ARM) with an initial rate of 5.5%. The loan has a 2/2/5 cap structure. The MAXIMUM rate after the first adjustment is:Finance
- Private Mortgage Insurance (PMI) is typically required when a conventional loan's loan-to-value ratio (LTV) exceeds:Finance
- Discount points paid on an Arizona mortgage loan:Finance
- An Arizona buyer's agent who is also a licensed mortgage broker and originates the buyer's loan without disclosure is:Agency
- An Arizona buyer takes out a $350,000 mortgage at 6.75% for 30 years. The monthly payment factor is $6.49 per $1,000. What is the total interest paid over the life of the loan?Real Estate Math
Key Terms to Know
Discount Points
Prepaid interest paid to a lender at closing to reduce the mortgage interest rate, with each point equal to 1% of the loan amount.
AmortizationThe gradual repayment of a loan through scheduled periodic payments that cover both principal and interest.
Adjustable-Rate Mortgage (ARM)A mortgage with an interest rate that changes periodically based on a financial index, usually after an initial fixed-rate period.
Loan-to-Value Ratio (LTV)The ratio of a mortgage loan amount to the appraised value or purchase price of a property, expressed as a percentage.
Math Concepts
Study This Topic
Practice More Arizona Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Arizona Quiz →