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Jumbo
Home Mortgage Loans
 Jumbo
Home Mortgage Loans - What They Are and Where
To Get Jumbo Loan Financing . . . A jumbo mortgage
is different than a conventional loan. A jumbo
loan amount exceeds that limit set by Federal
National Mortgage Association. The limit of jumbo
loans can change every year, but currently is
about $300,000. With a jumbo mortgage loan, the
interest rate is higher than traditional mortgage
loans for smaller amounts. The rate is higher
is because the jumbo home mortgage loan has a
recognized higher risk by mortgage lenders.
A jumbo loan is considered a non-conforming loan.
Conforming mortgage loan programs have perceived
less risk by lenders and have lower interest rates.
Most mortgage loans that are done by lenders are
conforming loans. Jumbo loans are a small percentage
of the mortgages that are done.
Although most mortgage loans that are done in
the US, are smaller loan amounts than those limits
set by Fannie Mae and Freddie Mac for jumbo loans,
in California, home prices are so high, that there
are many jumbo home loans done there.
If you live in California and/or are looking
to get approved for a jumbo loan, the internet
is a great place to apply to get a jumbo loan
for a few reasons. First of which is that there
are so many lenders online competing for your
business, that lenders are forced to offer their
lowest possible rates in order to get your business.
For example, a local broker, who has a steady
client base, may not be motivated to offer the
lowest rate or the lowest closing costs, when
the competition is only local. However, when you
have the largest group of lenders online competing
for your business, you can get a much better offer.
Where is the best place to apply for a jumbo
loan? There are many mortgages companies online
who can provide you quotes from multiple lenders.
These companies will be able to provide you with
quotes for usually up to 4 different lenders.
This is a great way to make sure to get competitive
offers. However, make sure you still ask each
competing mortgage lender about the points they
will charge, their closing costs and any other
fees, to make sure you are getting the best loan
you can.
Getting the lowest interest rate does not always
make the loan you want, the best deal. The lender
can charge more in other places that you might
not discover until the closing.
Helpful
Tips for Obtaining a Mortgage
Listed below are some mortgage tips that can
help you obtain a mortgage with less hassle, and
a lower overall cost:
- Determine how much home you can afford. Based
on your income and any long term debt, know
the maximum payments you can be certain of making
comfortably. Home loans are serious business,
and buying too much home can build a mountain
of debt. Make sure you can make your payments
easily and it shouldn’t be a burden.
Use our mortgage calculator that will allow
you to enter your income and it will tell you
how much mortgage you can afford.
- Make a budget. Do you know where your money
goes? How much is spent on unnecessary things?
How much are your utility bills? If you are
buying a larger home, the utilities will most
likely go up. Will you be able to make payments
on time and pay the larger bills? Does the home
you are considering require repairs or upgrades?
This tip recommends you figure these things
into a budget to avoid overspending.
- Gather documentation. You will be required
to show quite a bit of documentation before
you mortgage is approved such as IRS returns
for past years, W-2’s, proof of current
salary, assets, debts, records regarding child
support or alimony and the like.
- Become educated about mortgage types and
rates. The tip is very important. If you know
the meaning of the mortgage “lingo”,
the types of loans available and what the current
rates are, you will be in a much better position
to negotiate your home loan. Start studying
your options well before you plan to buy!
- Consider a shorter-term mortgage loan. The
goal of the shorter-term mortgage loan is to
pay off the home mortgage loan in the least
time possible while allowing enough money to
live comfortably. You can save tens of thousands
of dollars in interest payments!
- Don’t forget you will have to pay closing
costs. Many people forget to include these costs
into their mortgage loans and end up short at
the closing. Find how much to expect to pay
in closing cost from your mortgage broker, real
estate agent or the title company. In many states,
the title company handles the closing and can
determine your closing costs quickly and easily.
- Remember that a mortgage broker may charge
you extremely high fees to locate a mortgage
loan for you. A private mortgage broker is a
middle man in finding mortgage loans for buyers
of real estate. This service is not free as
many consumers think it is. The services of
a mortgage broker can cost you thousands of
unnecessary dollars. You best choice is to find
your own mortgage loan online, or thru your
own financial institution and save money.
The above tips should help you make your mortgage
loan shopping easier and less expensive. Be sure
to do all your homework before applying for a
loan, this could save you thousands of dollars.
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