|Jumbo mortgages are used to purchase high-priced homes that require larger than normal loans. The market for jumbo mortgages—which are too expensive for Fannie Mae or Freddie Mac to purchase—was decimated by the credit crisis that erupted in the late summer of 2007. But in recent months, several large banks have demonstrated a renewed interest in the market. If your mortgage balance is 417k or above you have a rare opportunity to reduce your interest rate and save 10’s of thousands of dollars. A Jumbo Loan is a loan that is for 417,000 dollars or above. Historically, interest rates for these larger or “Jumbo” Loans have been much higher rates than the average conventional loans that are under 417,000. Due to housing meltdown and financial crunch Jumbo rates jumped high. Qualifying for a Jumbo loan has been very difficult. Some lenders have released their restrictions in certain states such as AZ, IL and CA. This will allow people to refinance their property for an aggressive 30 year fixed rate. The bank will only allow you to refinance up to 75% loan to value which means you have to have 25% equity in your property. They also want to verify you have 6 months of seasoned assets. Bank of America, JPMorgan Chase, and Citi Group have announced plans to issue more jumbo loans. This revived competition is the primary factor driving rates down, says Guy Cecala, publisher of Inside Mortgage Finance. “There are enough players out there that if you are shopping for a jumbo mortgage these days, you can call two or three lenders and get quotes from them,” Cecala says. “Before, you couldn’t even do that.” If you’d like to know what your options are, shoot me an email and I’ll let you know what to expect. Jeremy Doering Mortgage Planner The GreenHouse Group Jd@GreenMeansGrow.com|
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