Jumbo Loans

Jumbo loans are designed to finance luxury properties and homes in exclusive real estate markets. Unlike conventional mortgages, a jumbo loan is not eligible for purchase or guarantee by Fannie Mae or Freddie Mac due to its high-risk profile. Jumbos require unique underwriting requirements and have tax implications that need special attention from your lender as well as you – the buyer of this property.

Interest Rates

The initial interest rate on Jumbo Loans is usually predetermined by market conditions but may be higher than conventional loans as well. It can also take longer for a borrower to build their equity in the property which could make them ineligible should they want or need to refinance before paying off the entire balance due (reserves). If someone has limited funds available for closing costs versus what they would like, then refinancing might not be an option until after all payments are made on time every month, so they could have the funds to cover closing costs.

Should you get a Jumbo Loans

Jumbo loans are perfect for those individuals who have a considerable amount of equity in their homes. In addition, they may also be worth considering if you qualify because there is no down payment and the interest rates will be lower than what’s found with an FHA or VA loan.
If you’re looking to buy a home that costs between $200 – 800 thousand dollars then it might not make sense to take out jumbo loans unless your credit score/income requirements meet certain underwriting guidelines which would include having at least 20% down on the property (or some other type of collateral), being able to repay the monthly payments without issue, as well as meeting all DTI qualifications.

For those who have an excellent credit score, the jumbo loan rates are some of the best that is on offer. To get a Jumbo Loan you need to meet certain requirements:

  • 20% down payment or other collateral (such as stocks/bonds)
  • high enough income for repayment without issue
  • good credit history.

Advantage of Jumbo Loans

The major advantage of applying for a JUMBO loan is that you have no down payment so your monthly payments will start lower which can help when it comes to qualifying or refinancing later on. Jumbo loans are also easier to qualify for than a traditional mortgage, with less stringent debt-to-income ratios and credit score requirements.

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The disadvantage may be of Jumbo Loans

The interest rates for jumbo loans are often higher than the average. This is because they come in larger increments, meaning that it will take a longer time to pay off with smaller payments each month.

Contact Legacy Mortgage Today!

Legacy Mortgage is a nationally recognized FHA Loans brokerage company specializing in both refinance and new home loans. We can help you turn your dream of a gorgeous, custom-built house into reality by providing the most competitive rates on mortgages available anywhere today!

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