Shahla KiarashiSenior Loan Officer NMLS#: 50723
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If your financial situation is on the upswing, a jumbo loan can be a good way to bypass a starter home and purchase the full-sized home of your dreams. Here at NJ Lenders, we serve our clients’ needs by offering increased flexibility, excellent customer service, and competitive jumbo loan rates.
What is a Jumbo Mortgage?
A jumbo mortgage, often referred to as a non-conforming loan, is helpful if you’re looking to secure a mortgage in a high-cost area. A jumbo loan exceeds the maximum Fannie Mae high-balance or conforming loan limit. While this figure is dependent on where you live, the current Fannie Mae loan limit in many high-cost areas is $822,375. If you need to take out a loan over the conforming loan limit, a jumbo mortgage could be the best way to secure a large and beautiful home.
Jumbo mortgages can also help you to rapidly build your credit. Considering that your jumbo loan payments are consistently on-time, your credit score will consistently improve as well. However, it’s important to note that it may be more expensive to refinance a jumbo loan due to increased closing costs.
Different Types of Jumbo Loans
There are two different types of jumbo loan options: Fixed Rate and Adjustable Rate.
Fixed Rate Jumbo Loans
Fixed rate jumbo loans offer consistent monthly payments despite potentially rising interest rates. A fixed rate jumbo loan allows for easier budgeting and a greater peace of mind.
Adjustable Rate Jumbo Loans
Adjustable rate jumbo loans are best for those that are anticipating a significant increase in income or property value over the next several years. An adjustable rate jumbo loan may also be beneficial if you are only planning on staying in your home short-term or are looking to lower your payments. Adjustable jumbo loan rates typically come in 3-, 5-, and 7-year mortgage lengths.
How a Jumbo Loan Could Work for You
While jumbo loans traditionally require greater down payments than conventional mortgages, independent mortgage bankers such as NJ Lenders are offering competitive rates at 20% down with the potential of no more than 10% for qualifying homebuyers. If a jumbo loan makes sense for you, they offer a fair amount of flexibility when it comes to purchasing a higher-quality property.
The home of your dreams could be within reach as NJ Lenders offers jumbo loans with up to an 80% LTV, up to $3,000,000. A loan to value (LTV) is the amount you’re able to borrow in relation to the value of your home.
NJ Lenders also offers qualifying homebuyers the ability to opt for cash-out refinances at rates of up to 75% of their home’s current market value. While many of the larger banks have eliminated this option, independent mortgage bankers are offering the ability for you to use a cash-out refinance for your home improvements, renovations, and other investments.
The additional offerings provided by NJ Lenders allow for greater flexibility in securing a jumbo loan. From more attainable credit requirements to lessened reserve requirements, NJ Lenders is here to help you secure your dream home on your terms.
Are You Considering Taking Out a Jumbo Loan?
If you’re looking to take out a jumbo loan, you can feel confident in ending your search here. NJ Lenders is committed to offering greater flexibility, reduced reserve amounts, cash-out refinances, and more, in the interest of building long-lasting relationships with our clients.
Talking to a licensed lending officer is the first step in securing the best loan for you. After years in the industry, we’re confident in our ability to provide you with the answers you’re looking for, which is why we offer a variety of mortgage programs, including competitive Jumbo mortgage rates. Give us a call today to speak to one of our lending officers about your options.