(PRWEB) April 28, 2014
Kevin Leonard home loan expert is submitting new mortgage related videos to his YouTube channel for his real estate partners. Jumbo loans in San Diego are very common due to the large mortgages needed to purchase many of the homes there. Kevin Leonard has put together an informational video to discuss what makes a loan a “jumbo”, and how to get pre-approved for a jumbo loan in San Diego. Jumbo home loans generally calls for higher credit scores, lower debt-to-income ratios, bigger down payments and higher reserves, compared to regular conforming loans. Furthermore, when compared to a conforming loan, a jumbo loan can also have higher rates of interest. Differences range by lender, so ask whoever is working on the loan to present their specific jumbo loan fees as well as requirements.
A jumbo loan is just one possible option to purchase an expensive house, however additional options include:
1. The person applying can put a larger down payment. If the individual is able to place additional money towards the down payment, they will need to borrow less. This may be particularly beneficial in the event that home loan is just a little over the conforming loan limit.
2. Another popular option is acquiring 2 mortgage loans. This is known as a combination loan or (second mortgage). This particular choice is more complicated. This requires getting a second, smaller mortgage simultaneously as the first. This way, the first mortgage, the larger home loan would comply with the loan limitation, and it might prevent a few of the increased requirements and increased interest rates of a jumbo home loan in San Diego. Although, the rate of interest for a 2nd home mortgage is commonly greater than for a 1st mortgage loan, therefore those considering this option will need to compute the cost as well as possible cost savings cautiously. Additionally, if the person decides to take out 2 mortgage loans, that individual will be accountable for paying each of them monthly. Which means the individual applying will have to make certain they handle the combined installments. Not everybody are going to be qualified to receive this type of loan option.
When thinking about a jumbo home loan, consult together with jumbo home loan expert. Together, the borrower and the mortgage professional are able to explore various scenarios to find out if it seems sensible to save to have a bigger down payment before you purchase, attain 2 home loans, or to simply take out jumbo home loan mortgage. Whichever decision that is selected; the client and the mortgage professional should make certain that the individual will be able to comfortably manage to pay for the loan(s) they receive. Knowing the entire expenses and terms of an assortment of home loan choices will allow the borrower to reach the smartest decision for their specific circumstances.
This loan limit varies by county across the U.S. Currently, in San Diego County the high balance conforming loan limit is $546,250. FHA home loans in San Diego County maintain a maximum limit of $546,250 for single family homes. This particular amount is actually an increase from a loan product which was created to aid first-time home buyers, low income buyers, and individuals with credit challenges, have the ability to purchase a house. But San Diego’s housing prices are a bit higher than many counties across the country.
The cost of an FHA home loan versus a conventional loan can be more expensive in upfront fees. The downside of FHA loans is the increasing cost of mortgage insurance premiums. In 2014 FHA borrowers will pay and upfront and an annual premium. The annual mortgage insurance premium will vary depending on a particular loans terms and (LTV) loan-to-value ratio. This increases the long-term cost of the loan for the borrower. Anyone seeking any type of loan whether conventional or a jumbo loan should consult with a licensed mortgage professional. To learn more about San Diego home loans visit the website here, http://www.kevinleonardmortgageexpert.com/jumbo-loans/
About: Kevin Leonard entered into the mortgage business in 1997 and quickly rose to become the top producing loan officer in the country and earned national acclaim for his efforts. Mr. Leonard prides himself in offering constant communication with his clients so that they have a full understanding of the loan process from start to finish. He is personally responsible for thousands of fundings, and along with his team, he has over 5 billion in residential loans funded to his credit. Mr. Leonard has a full understating of the loan process from start to finish and also consults with mortgage bankers in the secondary market. There are few, if any, that have the experience that Kevin Leonard has in the mortgage profession. He was one of the first to register with NMLS in 2008 when it was first instituted, and currently is licensed in the state of California as a loan originator. He is partnered with some of the top real estate agents in San Diego for a reason, he offers fast pre-approvals with the ability to fund purchase loans quickly.