Why 2 loans can be better than 1: As housing prices continue to rise, so do loan amounts. You may know that each county has something called a County Loan Limit (You can click here to see them). But did you know once you go over those limits your loan is considered to be Non-Conforming, or “Jumbo”? So what? Well, once you’re in that category many things can change. Here are just a few: Higher Credit requirements Larger down payment requirements Property restricitons Borrower restrictions Higher Rates So you can see that it would be valuable to avoid these issues. Let’s talk about How to Beat the Jumbo Loan. One of the most effective ways to do this is with a 2-loan combo. To do this, we do a first loan up to the highest amount possible, while maintaining the best parameters. That might mean considering things like loan amount, Loan-To-Value ratio, etc. Then we add a 2nd loan that makes up for the difference. For example: Purchase Price = 850k 1st loan of 600k 2nd loan of 165k This gives us the best rates and terms on the first loan, and as a bonus, allows us only 10% down payment! Using this method could save you hundreds of dollars a month, and 10’s of thousands over the life of the loan. So why doesn’t everyone do this? Good questions
Alternatives to HELOCs and Reverse Mortgages. What if I told you that you could borrow money, and not have any payments due for 30yrs? Too good to be true right? Well maybe not! We now have new loan program allows home owners to use the equity in their home, get cash in hand, and not owe any payments. This is not a new program, but it hasn’t been available to most people for a very long time. Basically it works like this – The lender writes you a check based on the equity you have in your home. Then you do not need to pay it back until you want to, or you sell your home. In exchange the lender shares in the increase (or decrease!) in your home value. If your home goes down in value, you could end up owing no more than the cash you were given. If it goes up, you would pay only a portion of that increase, relative to the amount you borrowed. They also take into consideration improvements you make to the property. In other words, if you add a bedroom to your home, that increase in value is excluded from your repayment calculation. In a way, you can think of this as the reverse, of a reverse mortgage. It’s no doubt that you have many questions about this. Just like a
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The GreenHouse Group INC Broker CA BRE#:01859042
Co-Owner, Jesse Ibanez, Agent – Jesse@GreenMeansGrow.com 858-863-0261 CA BRE#: 01405643
Co-Owner, Jeremy Beck, Mortgage – Jeremy@GreenMeansGrow.com 858-863-0261 CA BRE# 01404189
Broker of Record, David Hughson – David@GreenMeansGrow.com 858-863-0261 CA BRE# 01391065
Located @: 3111 Camino Del Rio North, Suite 400, San Diego, CA 92108
Phone #: 858-863-0261
The GreenHouse Group INC is a full service Real Estate & Mortgage Planning Firm located @ 3111 Camino Del Rio North, Suite 400, San Diego, CA 92108. We'd love for you to drop by and say "hello" to us here at our beautiful offices in Mission Valley. Or, if you'd prefer to drop us a line you can call us anytime @ (858) 863-0261. We look forward to meeting you!