All About Jumbo Loans
- posted 3.16.2015
- Nicole Johnson
- Home Loans
Sometimes traditional loans aren't enough to buy the home you really want. A loan professional can help you finance the purchase of a high-priced home or refinance your current loan with a Jumbo or Super Jumbo Loans.
Buying a Home with a Jumbo Mortgage
Jumbo Loans offer you greater flexibility in buying a home. A mortgage expert can help you with a Fixed Rate Mortgage or an Adjustable Rate Mortgage. With a Jumbo Mortgage, you won't be restricted by loan limits, so a loan expert can help you find the best loan for your financial goals. With a Jumbo Mortgage, you can get:
- Down Payments of Just 20%. It can help you get into the home of your dreams.
- Interest Only Mortgage. This type of loan allows you to defer paying the principal on your mortgage for the chosen term of the loan. Instead, you make only the interest payment, which allows you to keep monthly payments low at the beginning of the loan.
- Ratios Up to 50 Percent: With a Jumbo Loan, you can incur a higher debt to income ratio while still enjoying competitive interest rates and loan terms.
- Non-Occupying Co-Borrowers Allowed. If you worry about qualifying for a loan, talk to a mortgage professional about home financing options that allow a friend or family member, who will not be occupying the home, to co-sign on the loan. This is a great option for those who cannot provide verifiable income or have less than perfect credit.
Refinancing a Jumbo Mortgage for a Better Rate
There are many reasons to refinance a home loan. You may want to lower your interest rate or monthly payments; perhaps you want to cash out refinance to pay for remodeling or a home improvement project; or maybe you just want to change the terms of your loan. Whatever the reason, a mortgage professional can help you decide which loan refinance package is right for you. When rates are low, it's a great time to consider refinancing your Jumbo Mortgage.
Once your mortgage is down to below the OFHEO loan limit, a home loan specialist can help you make the transition to a traditional conforming loan. Making this transition will lower your interest rates and help you pay off your loan faster.
Additional Jumbo Loan Refinance options include:
- No Mortgage Insurance Required. Most mortgage lenders require borrowers to pay for private mortgage insurance (PMI) in order to finance loans with high loan to value ratios.
- Interest Only Refinancing. If you need to lower your monthly payment temporarily to avoid foreclosure or divert monthly payments toward other uses, you can use Interest Only Refinancing to reduce your monthly payment to just the interest rate cost.
- Cash-Out Refinancing. A Jumbo Refinance package allows you to cash-out up to $35,000 on your mortgage. You can use this money to make large purchases or pay off high-interest debt.
Contact your mortgage lender to ensure you'll have a smooth and straightforward home financing experience.