San Diego, CA (PRWEB) April 01, 2014
A jumbo mortgage loan is sometimes the only option for those who are planning to buy their dream house, or are simply trying to purchase property that costs more than what would be covered by conforming loan limits. A new article from Loan Love takes a look at this mortgage option with their new jumbo loan guide. The team at LoanLove.com is devoted to help empower both first time and experienced homeowners with valuable resources, first-class knowledge and connections to top-rated industry professionals and has the mission of helping consumers and borrowers to obtain the latest information on mortgage lending news, the real estate market and the U.S. financial landscape in order to help them obtain a home loan that they will love. The new article continues to keep home loan borrowers up to date so that they can best plan for their home loan goals this year.
The guide to jumbo mortgage loans says, “Jumbos are specifically tailored to meet the needs of individuals who need to finance a home that falls outside conforming loan limits. So what is this limit? For conventional loans for single-unit houses in most areas, the current limit is from $417,000 to $625,000, depending on whether your area is a “high cost” or “low cost” area; for an FHA loan, the limit is $729,750. These limits are subject to change as the economy changes and based on the area where your home is located; your lender can give you the specific rates for your area.”
Loan Love goes on to explain that the primary advantage of jumbo mortgages is that they are usually the only option for those who want to take out a loan for a home that costs more than the maximum conforming loan limits in their area. The only other option that home buyers in this situation might have is to pay a considerable down payment to bring the loan size down to conforming limits and finance their home in this way. However, there are numerous disadvantages to these types of loans as well. Loan Love lists some of these as:
- “Because the loan is higher – and that means more risk for the lender – interest rates are usually higher than the rates available with traditional, conforming loans.
- Your loan is bigger, interest rates are likely higher – that means your monthly payment is going to be larger than you’d have with a conforming loan (of course, most of that increase is due to the increased cost of the home).
- Again, because the risk is greater, jumbo loans typically have more stringent income and credit requirements that must be met in order to qualify for the loan.
- Many banks are unwilling to write jumbo loans, which means you’ll have to find a specialty lender – not too difficult, since there are many reputable lenders who are willing to handle jumbo mortgages.”
The article ends by noting that despite some disadvantages jumbo mortgages have actually seen an increase in popularity in recent years. This is due mainly to people starting to see their homes more as a real investment in the quality of their lives. For those with plans to live in a luxury home in the future a jumbo mortgage may be the way to make their dreams a reality.
For more information on jumbo home loans, click here to read the full guide on LoanLove.com.