- 1). Make a bigger down payment. In general, as of 2010, the maximum loan amount for a Fannie Mae mortgage is $417,000. The first way to ensure that you avoid jumbo mortgage rates is to make sure that your loan amount meets conforming mortgage limits, which you can accomplish by making a larger down payment on the purchase of a home or paying down the loan balance for a refinance.
- 2). Increase your credit score. Another factor that plays into qualifying for a conforming mortgage and avoiding jumbo mortgage rates is to make sure that your credit score is high enough to qualify for a conforming mortgage. For Fannie Mae, a credit score of 740 is excellent, so pull your credit report and make sure that everything is in order and that your credit score is above 700. If it isn't, work out arrangements with creditors and correct inaccurate and potentially negative items showing on your credit report.
- 3). Get a piggyback mortgage. Another way to avoid paying jumbo mortgage rates without having to come up with a larger down payment is to use a piggyback mortgage, where your first mortgage is below the conforming mortgage limit and a second mortgage is established at the same time as the first to make up the difference. This allows you to take advantage of the lower conforming mortgage interest rates on the first mortgage and pay standard second mortgage rates on the second mortgage.
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