What Jets, Shrimp, and Mortgages Have in Common

“Christmas gift suggestions: To your enemy, forgiveness. To an opponent, tolerance. To a friend, your heart. To a customer, service. To all, charity. To every child, a good example. To yourself, respect.”–Oren Arnold

Plane over Water
(Image via Manny Kagan: Approaching San Francisco Airport)

The answer might surprise you, but in spite of the huge apparent difference they can all be called “Jumbo”.

When I fly across the country on a Jumbo jet, I always have my camera with me. These two images were selected from many photos I have taken throughout the years in the air and on the ground.

Ice Plane

(Image via Manny Kagan: Landing in a snow storm in New York)

Jumbo Shrimp is of course an oxymoron.

Jumbo mortgages are loans over $625,000. They are primarily offered by portfolio lenders and have different underwriting guidance. But here is where the confusion creeps in.

In terms of the terminology, loans up to $417,000 for single-family residence (SFR) are conforming; for 2 to 4 unit properties limits arehigher. And if the property is in Alaska or Hawaii, the limits are different again. Loan limits from $417,000 to $625,000, with their own scale of limits for 2 to 4 units, can appear under different names–some are called “Jumbo Conforming”. Then there are FHA loans which can go up to $729,750 for SFR and even higher for 2 to 4 Units. Loans for units have higher interest rates and some additional restrictions. The same goes for Jumbo Conforming, while real jumbos have completely different structures. You can borrow up to $5 million with limited LTV.

All jumbos have a reserve requirement, but the amount varies between lenders. Sometimes borrowers pay the balance down to get to a conforming limit, or we break the loan into “first” and “line of credit” (L/C) to get a better interest rate.

We are currently helping clients with quite a few jumbos. The amounts vary from $675,000 to $1,500,000 and every client has different preferences. I am sure you have a few friends who could use my help to get them Jumbo mortgages.


The holiday season is upon us!

(Image via Manny Kagan: One source can bring a lot of light)

When I wrote last week’s email, my daughter Tamar asked why I did not write about Chanukah. One of the reasons was that I did not have an appropriate image to illustrate it. I wanted to photograph all eight lit candles, which was only possible on Saturday, the last night of Chanukah. (Actually, there are nine, but the one in the center, called “Shamash” or “attendant” is there to light the other candles). The holiday of Chanukah, and the tradition to light eight lights (in ancient times, they were olive oil lamps) commemorates events that happened in the 2nd Century BC. The nine-branched Menorah or hanukiahcomes in different shapes and forms. However, there is only one very clear message. One light (one day) at a time, with the help of others, can illuminate our lives for many, many days and years.

And since Christmas is next week and you can light all the lights at once on the Christmas tree, I included an image that I photographed from Macy’s with my iphone last week.


(Image via Manny Kagan: Union Square, San Francisco)




Best Wishes,