A jumbo loan sounds kinda cool, does it not? We think so! A jumbo loan is needed when you are looking to borrow more money than normally allowed. In most areas, this number is around $548,250. There are also new programs available where you do not need twenty or thirty percent down to get a jumbo loan anymore. This is great news for those of you wanting to purchase an expensive home!
Since a jumbo loan is considered to be a non-confirming loan, the requirements are different than other loans. Depending on the lender, the minimum credit score, minimum down payment, maximum debt-to-income ratio, and other criteria will be a little different for each lender. Since the requirements truly do vary based on the lender, we recommend you do your research and look at all of your options. These types of requirements not only differ and vary, but so do interest rates and other fees as well. When you do your research, be sure to look at all aspects of the lender you want to use. We cannot encourage you enough to be sure you shop around!
This may come as a surprise to you, but the mortgage rates of a jumbo loan can be similar to regular loans. As use, there are many factors that are involved when it comes to the mortgage rate.
If this has you thinking about getting a more expensive home now, be sure you would feel comfortable with what your monthly mortgage payment may potential be. You will need to make sure you have a steady and good income coming in every month in order to be comfortable in this. This is especially true if you do not plan to make a significant down payment.
We cannot encourage you enough to be sure you do your homework and look at all of your options in choosing who to work with your jumbo loan!