New Investors Offering Better Pricing For Jumbo Loans
Do you want to refinance your mortgage loan for less? Lots of people have been pushed to a tricky end by the continuously rising mortgage rates especially if your loan size is more than $417,000. These mega loans cost more to refinance but with the coming of new investors in the market, Jumbo mortgages can now be refinanced with ease. Where one applies the loan be it a credit union or a bank doesn’t matter. The investor is the one determining the cost of your mortgages.
Traditional investors like Freddie Mac and Fannie Mae normally purchase loans up to a maximum compliant limit designated by the county (It can be as high as $625,000 in high markets and about $417,000 in low markets). These investors are fair in their pricing if loans are $417,000 and below but any loan more than that could cost more.
“Courage is what it takes to stand up and speak; courage is also what it takes to sit down and listen.” ~ Winston Churchill
Refinancing Your Jumbo Loan Is Now Easier
The entrance of Wells Fargo, Chase and many others to the market has made refinancing of jumbo loans easier. These investors are buying loans made by credit unions, banks, direct lenders and brokers. If you want to refinance a loan more than $417,000 ask your mortgage company about the terms of its “jumbo”. Working with a jumbo investor may make refinancing easier and affordable. One reason why it’s ideal with jumbo investors is that their rates are not subject to frequent interest rate adjustments that Freddie and Fannie usually impose. The essence of these companies is to make your refinance for a lower payment and interest rate.
Benefits of ‘Tying A Knot’ With A Jumbo Investor
There’re some benefits that one enjoys by working with a jumbo investor. Take a case where you a first mortgage on your home and second loan from home equity line of credit and you’d like to consolidate them into one. Fannie and Freddie companies would consider this as a “cash out refinance” in case the sum of the two loans exceeds $417,000 and they would charge more in terms of interest because the added HELOC debt was not used in acquiring the home. On the other hand, a jumbo investor would take this as a “rate and term” scenario which offers better pricing. Most jumbo loan investors recognize a jumbo mortgage to be anything bigger than the conforming limit offered by the county.
Illegibility for a Jumbo Mortgage
Credit requirements for this type of loan are tight as most of the jumbo mortgage programs requires borrowers who have a low debt-to-income ratio & equity in the home as well as good credit. For those who’ve just completed refinancing homes owned less than 12 months, jumbo investors may require that they refinance using a different loan. Jumbo investors may have different requirements for specific states when one is refinancing a home owned for less than 12 months.