Boston Property Management: Jumbo Loans
Don’t you just hate it when you are unable to afford the home of your dreams because the city is quite expensive? Some of these homes can cost around half a million dollars. This is where you can avail a jumbo loan to purchase your home. Anything over $417,000 is considered a jumbo loan.
Jumbo loans vs. conventional loans: What’s the difference?
Jumbo loans can be fixed-rate or an adjustable-rate mortgage. There could be cases where you would need private mortgage insurance. The good thing is that jumbo loans can also be refinanced. However that is where the similarities end as jumbo loans tend to be more expensive. Even if the interest rates are competitive, you still end up borrowing more from your lender. Lenders will also go through your credit history with a fine tooth comb and make you take up expensive title insurance. They will also be quite strict when it comes to appraisals. They will make sure that the home is actually worth the money. This is why they will give you the exact amount and not give you something over the amount.
Boston Property Management: Who can qualify for a jumbo mortgage?
You need to be doing really well financially before you can quality for a jumbo loan. Lenders will make you put down around 10 percent of the purchase price and then a further 20 percent. This doesn’t count so much if your credit score is an issue. A good credit score of 680+ is what they are looking for.
Self-employed people will need to have a long history of documentation to get a loan. It doesn’t matter if you do some business on the side whilst being a full time employee. Lenders will need documentation for that income. Also make sure that you have the last two years of your tax returns to show that you are self-employed.
Jumbo loans can help you get the home of your dreams. However you should only go for it if you have a very stable income. In the event that you may want to refinance in the next few years, you may have to take out a jumbo ARM. This is a good method as you will be able to pay lower rates in your loan term and spend more on the home. Just get a 30 year fixed rate with a competitive interest rate.
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