What is Considered a Jumbo Mortgage Loan?
Choosing the right company to provide a jumbo loan to achieve your financial goals is easier than you thought. You can always rely on the professionalism of our team to find the best possible match. A jumbo mortgage is a home loan for an amount that exceeds conforming loan limits established by the Federal Housing Finance Agency. The limit is $417,000 in most states. Jumbo loans are designed for higher priced homes in Fort Lauderdale. The limit increases to $625,500 in the highest cost areas. There are no pre-payment penalties with a jumbo loan mortgage.
Considering a Jumbo Loan for Your Home in Fort Lauderdale?
Currently Jumbo loans have lower interest rates than conforming loans. Although Jumbo loans have stricter requirements to meet, they are available in these forms: fixed, adjustable, VA, even FHA. All applicants must show proper documentation on all other loans held and proof of ownership of non-liquid assets, like other real estate. Fort Lauderdale is a fabulous real estate market with some of the finest homes in America.
A Few Facts About Jumbo Loans:
- For Mortgages in excess of $417,000
- Full 6 to 12 months reserves are required
- You need a minimum credit score of 620
- First time home buyers are permitted
- Sufficient income and assets for collateral are necessary
Nationwide Home Loans is a leader in the mortgage industry. Our Jumbo loans are always available to those that qualify. Doing business with the right company means everything when it comes to making this large financial transaction. Our team of professional lenders will provide the service, assurance, and the right financial product for you. Our jumbo loans are the right options for higher priced homes. Your actual monthly payment will vary based on your situation and the current interest rates at the time of application.
Risks That Will Come with a Jumbo Loan
It makes sense that jumbo mortgage loans are a higher risk for lenders. They are taking the chance the borrower will default on the loan at some point in time. If this occurs it may be harder to sell a lavish residence quickly for its full price. Luxury priced homes are more vulnerable to market highs and lows. Lenders prefer to have a higher down payment from jumbo loan seekers to help ensure a quicker payoff. As home prices fell in 2007 and 2008 and the number of foreclosures rose, lenders reduced the number of jumbo mortgages. Some lenders lost millions of dollars during the housing market bust. Lenders that remained in the jumbo loan market increased interest rates sharply to make up for potential and real losses. Jumbo loans do not meet the requirements set by Freddie Mac and Fannie Mae. This is another factor involved in setting high monthly payments. If you have confidence in paying your mortgage loan, a 30-year jumbo loan will provide the greatest leverage in the long run.
Benefits of a 30-Year Fixed Rate Jumbo Loan for Your Fort Lauderdale Home
A 30-year fixed rate jumbo loan has an interest rate that doesn’t change over the life of your loan. Locking in a fixed rate is a bargain because interest rates usually go up over time. A fixed rate is easier to budget than an adjustable rate. If you aren’t planning on moving or refinancing in the next few years then a fixed rate mortgage may be your best option. Bankers and other lenders are loosening their 20% down payment requirement for high earners. You can put as little as 5% down on a 30-year fixed rate jumbo mortgage if you qualify. There are also flexible refinancing options available.
If you meet all of the financial requirements and have an acceptable credit score you can quality for a jumbo loan in Fort Lauderdale. Choosing the right lender and loan option will spell success in obtaining the loan and paying for your jumbo mortgage. Nationwide Home Loans is here to serve you with the best people and tools in the mortgage industry. When you need a 30-year fixed rate jumbo loan be sure to contact us firts.