Prime & Jumbo Strategy

“When your loan amount exceeds the conforming limit ($766,550 in most areas, up to $1,149,825 in high-cost zones), you enter jumbo territory — a different lending universe with higher rates, stricter requirements, and unique optimization strategies.”

“Jumbo lenders obsess over reserves — liquid assets remaining after closing. Meeting reserve requirements isn't just about qualification; it's a pricing lever. More reserves = better rate.”

“The ARM discount in jumbo lending is typically larger than in conforming — often 0.75-1.25% below the 30-year fixed. On a $1M loan, this translates to $7,500-$12,500 per year in savings during the initial fixed period.”