Jumbo Loans - 3 Types
The jumbo mortgage market has changed dramatically in the wake of the mortgage credit crisis and
there are now 3 main types of jumbo loan options.
- Portfolio jumbo and super jumbo mortgage loan programs
- New "conforming" jumbo loan programs for high cost areas
- Traditional "secondary market" jumbo loan programs
| Jumbo Loans - 3 Types |
Portfolio Jumbo Loans |
Conforming Jumbo Loans |
Traditional Secondary Market Jumbo Loans |
Maximum Loan Amount: $2,500,000 |
Maximum Loan Amount: $729,750* |
Maximum Loan Amount: $1,500,000 |
Rates: Below Market |
Rates typically within .25% of conforming (non-jumbo) rates |
These rates are very high at the moment and in most cases not worth considering |
Not available in all states |
Maximum loan amount varies by geographic area |
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Typically offered as a 5, 7 or 10 year fixed with a 30 year amortization |
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Interest only option available on 5 and 7 year |
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Jumbo Mortgage Rates - Portfolio Program
Current portfolio jumbo rate example - week of October 26, 2008:
Rate: 5.375%* (see below for list of available states and general guidelines)
Term: 5 year fixed/30 year amortization
Agency Conforming Jumbo Mortgage Rates for High Cost Areas
Due to the recent increase in the jumbo loan limits for conforming loans, jumbo mortgages with "non-jumbo" (aka much lower) rates are available in most high cost areas throughout the U.S.
These rates are as good or just slightly higher than the rates offered for loan amounts of $417,000 or less. The rates change daily, so please contact us for current quote.
Disclosures
Jumbo rate in above example assumes a purchase transaction for a non-California property and a loan amount of $1,000,000, fees and charges apply, 25% down, 30 day rate lock-in period, 700 middle FICO score, 15 months PITI (principal, interest, tax and insurance) cash reserves required an d escrow account for taxes and insurance. The advertised loan is a 5/1 ARM (Adjustable Rate Mortgage) with a 30-year term. After the initial period, the variable interest rate will adjust every 12 months and equal the sum of the 12-month LIBOR index (3.276% as of August 9, 2008) plus a margin of 2.5%. There is no prepayment penalty. The Annual Percentage Rate (APR) is variable and is subject to increase or decrease, therefore your payments may increase or decrease each year.
Loan secured against a 1 to 4 family principal residence. Loan is subject to underwriting approval and not all who apply will be approved. Minimum middle FICO credit score of 700 required. Higher loan amounts may require higher credit scores and slightly higher rates. Full documentation of income, assets and employment required. Fees and charges may apply. Taxes and insurance extra. A "cash out" refinance may increase the time and/or the total amount needed to repay your debt. As an example, a 30 year loan of $1,000,000 at 5.375% interest (5.521% APR) with 1 discount point would result in 360 monthly payments of $5599.71. The rate and term of your loan may vary. A "lock-in fee" may be required to secure rate. This rate is an example and is subject to change without notice. Escrows for taxes and insurance may be waived for .25 in discount points. Terms, conditions and restrictions apply. Call for more information.
Jumbo and Super Jumbo Mortgage Loans - Available States (Portfolio Program Only):
Colorado
Connecticut
Georgia
Illinois
Maryland
Massachusetts
Missouri
New Hampshire
New Jersey
North Carolina
Oregon
Pennsylvania
Rhode Island
South Carolina
Tennessee
Texas
Virginia
Washington
Washington DC
There are numerous County Restrictions for the portfolio program, so please contact us for more information.. We only lend direct to the consumer...no brokers please.
Other Portfolio Jumbo Loan Guidelines:
- Rates do not change daily, but are subject to change at any time
- 3, 7 and 10 year fixed with 30 year amortization also available
- Interest Only Option available**
- 20% or more down for a purchase
- 80% or less loan to value for a refinance
- Excellent reserves required
- 15 year fixed available
- Maximum loan amount: $2,500,000
- 700 middle credit score for loans up to $1,000,000
- 740 Middle Credit Score for loans above $1,500,000
