FAQ: Jumbo Loans

The mortgage process can be overwhelming for many homebuyers. Trying to determine which loan program is right for you, or what loan you may qualify for is difficult to do without the help of a mortgage professional. If your loan amount exceeds the Fannie Mae and Freddie Mac limits, it is considered a jumbo loan. Jumbo loans are not guaranteed by Fannie Mae or Freddie Mac, and therefore carry more credit risk for the lender. Below are some of borrowers’ most frequently asked questions regarding jumbo loans.

 

 

– Am I limited to purchasing a single-family home with a jumbo loan?

No. We offer jumbo loans for single-family and second homes, along with investment properties.

-What’s the best program for a jumbo loan?

You are not limited to a 30-year fixed rate program with a jumbo mortgage. Many of our clients choose an adjustable rate mortgage (ARM) program to take advantage of a lower interest rate and lower monthly payment.

-How will I qualify for a jumbo loan?

At GuardHill, we strive to provide our clients with financing tailored to their financial needs. In order to qualify for a jumbo loan, lenders often look for a strong credit score, a low debt-to-income (DTI) ratio, substantial reserves and possibly a higher down payment.

-Does a jumbo loan have a higher interest rate than a conforming loan?

Not necessarily.  In the past, jumbo loans generally had higher interest rates than conforming loans.  However, jumbo rates are ever changing and may be higher or lower than conforming rates as of late.

-Can I refinance my jumbo loan?

Yes. At GuardHill, we will provide advice regarding whether mortgage refinancing will be beneficial to you financially. We will analyze your current mortgage, current market interest rates and your financial situation to determine if refinancing your jumbo loan is the right option. Our goal is to help you obtain mortgage financing with the best terms to provide you with long-term financial benefits.

If you have any other questions related to jumbo loans or mortgage financing in general, feel free to contact us! We’re here to help guide and advise you every step of the way.