Jumbo Mortgage Rates
Determining Jumbo Mortgage rates is not as simple as determining conforming mortgage rates. There are a number of variables that must be taken into consideration and no two lenders are alike. Generally the following is true regarding Jumbo Mortgage Rates but are subject to change without notice.
- Fixed Rates and Adjustable Rates are available
- No Mortgage Insurance required regardless of loan to value or type of loan
- No Escrows required, but will escrow if asked
- Owner Occupied, 2nd Homes, Vacation Homes
- Condominiums, subject to approval
- Minimum credit score 650 (mid credit score), higher the score the higher the loan to value.
- Maximum debt to income ratio: 45%(ARMS) 50%(FIXED)
- Adjustable Rate Mortgages (ARMS) available
- Adjustable Rate Mortgages tied to 1 Year LIBOR
- ARMS are not convertible
- Rates are subject to change once a year after the initial fixed period.
- Available Reserves-generally seasoned for a minimum of 60 days
- Pre-Payment Penalty of 1% for 3 years (can be bought out of loan)
In determining the rate, rate adjustments may occur for the following reasons:
- Loan Amount
- Type of Dwelling
- Credit Score
- Loan to Value
- Debt to Income Ratio
- Location of home
- Appraisals, depending on the lender, one or two appraisals may be required and none can be over 180 days old. The lender may perform their own appraisal.
Determining the rate upfront is not possible since there are so many variables. A range can be given subject to change as the different variables are taken into account.
For a more informed look at what determines a mortgage rate (click here).
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