Pursuits

Why Lenders Love the $2.5 Million Home Loan

Fort Lauderdale, Florida.

Photographer: Hoberman Collection/UIG via Getty Images
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It’s shaping up as the year of the mega mortgage.

Home loans from $1 million to $5 million were the fastest growing part of the jumbo market in January, according to purchase application data from the Mortgage Bankers Association. Wealthy borrowers are seeking even bigger loans this year while luxury housing prices rise and lenders lure them with competitive terms.