Jumbo Mortgages
The current Conforming loan limit is set at $359,650, any loan amount above that figure is considered a Jumbo Mortgage.  Jumbo Mortgages are often subject to an interest rate pricing premium as well as additional underwriting restrictions.  A common strategy to lower overall interest costs, if your purchase or refinance balance is above $359,650, is to use a combination of both first and second trust money, referred to as an 80/10/10 or 80/15/5.  Every situation is different and this is one more option to consider when your purchase or refinance balance falls into the Jumbo Mortgage category.

Another option to consider for financing an Interest Only Jumbo Mortgage is the Smart Choice Loan.  The Smart Choice Loan does not have a pricing adjustment for the borrower if the loan amount exceeds $359,650, as would a standard Jumbo Mortgage.  Smart Choice Loans have a 1.00% Introductory Rate on a loan amount up to $1,000,000.  The Smart Choice Loan offers four different payment options that would be available for your Conforming and Jumbo loan sizes.  For example a $650,000 mortgage would have the following payment options each month:

• Minimum Payment         $2,090.66

• Interest Only Payment    $2,708.33

• 30 Year Payment           $3,489.34

• 15 Year Payment           $5,140.16
   

The principal and interest payment on a traditional Jumbo Interest Only LIBOR ARM at an interest rate of 5.75% with a loan amount of $650,000 would be $5,397.67. Each of these mortgage programs have their benefits, however, the Smart Choice Loan provides the most flexibility with the most payment options for any Jumbo Mortgage borrower.

Contact Us to get started TODAY!