When it comes to Jumbo Loans, these are loans that are over $400,000. These type of loans are similar to traditional mortgages but jumbo loans are quite a bit more difficult to get approved for. It is for that reason that they are for individuals with a higher income range. If this individual or individuals want to look into buying a nicer home, they will naturally need a bit larger of a mortgage loan.
As the name suggests, a jumbo loan will offer the ability, to a qualified borrower, for a sum that is quite a larger sum than is typically allowed. There are many ways that Jumbo Loans can benefit you. Read on and find out a few.
The Basics of Jumbo Loans
Dependent on where you live in the United States, you will fall custom to various different loan restrictions. This is referred to as “conforming loan limit.” What this means is generally the highest amount a borrower can receive on a single mortgage. This amount is usually between $400,000 and $600,000 in most states.
Though this loan may be larger, as you were looking for, it does come with a few tradeoffs. This includes higher mortgage rates due to the higher risk assumed by the lender of your choosing. Not only that, but Jumbo Loans typically require a credit score of 720 or higher.
Jumbo Loans are Versatile
There are many more benefits that come along with Jumbo Loans. There is a lot more flexibility in income qualifications. What we mean by this is that our Jumbo Loans come with no private mortgage insurance attached. The fixed rates offered will often be as low as 4%. While many lenders will offer both 15- and 30-year loans, they will also offer both fixed and adjusted rates. This provides the option down the line to refinance, if needed.
Not only that, but Jumbo Loan lenders are attaching attractive offers including private medical insurance, reduced lender fees, and quicker processing of the loan application.
Now that you have a better understanding of what jumbo Loans have to offer you, it is time for you to figure out if this type of loan is right for you. For all of you mortgage loan needs, you can count on our team at American Mortgage Resource, Inc. to provide you with the exceptional service that you deserve.