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Jumbo Loan
Posted on 5/18/19 at 12:38 pm
Posted on 5/18/19 at 12:38 pm
Buying a larger house. Putting about 30% down already. I was just informed that I will need to put an additional 20k down to make it not be a jumbo loan.
I was told the jumbo loan would be no extra fees or higher interest rates, but just a lot more hassle and paperwork. Reading online seemed to not back that assertion by our mortgage guy.
We have the extra 20k,but we were hoping to use that to paint, stain, etc to make the place perfect prior to moving in.
Also, is 4.125% good on a 30 year fixed?
I was told the jumbo loan would be no extra fees or higher interest rates, but just a lot more hassle and paperwork. Reading online seemed to not back that assertion by our mortgage guy.
We have the extra 20k,but we were hoping to use that to paint, stain, etc to make the place perfect prior to moving in.
Also, is 4.125% good on a 30 year fixed?
6
Posted on 5/18/19 at 12:44 pm to Tiger Attorney
quote:
Tiger Attorney
I thought attorneys were all about hassle and paperwork?
Posted on 5/18/19 at 1:06 pm to Tiger Attorney
Shop around. Can’t help you though. There’s usually multiple mortgage guys and bankers on here though.
Posted on 5/18/19 at 1:11 pm to Grassy1
Not this guy
Posted on 5/18/19 at 1:15 pm to Tiger Attorney
I’m going through a Jumbo loan right now.
The max conventional is $453k. So that’s the mark to hit to get it out of a Jumbo. Typically, Jumbo has stricter requirements and can have higher rates. It also varies a lot more based on the loan (LTV influences it).
However, assuming you qualify and can prove regular income, etc. There’s absolutely no reason to pay the money down for a conventional. I have not been hassled or have to provide any additional information than I did for a conventional.
May I ask who you’re going through (if local)? GMFS hassled me about the Jumbo, and I eventually went with a split loan. One conventional and one 2nd Mortgage. Now I’m refinancing that into a Jumbo. My rate (quoted last month, haven’t confirmed and locked yet) on the Jumbo is 4.375%, so 4.125% is really good. I’d like to know who so (and if any points) so I can leverage my loan at that rate as well.
The max conventional is $453k. So that’s the mark to hit to get it out of a Jumbo. Typically, Jumbo has stricter requirements and can have higher rates. It also varies a lot more based on the loan (LTV influences it).
However, assuming you qualify and can prove regular income, etc. There’s absolutely no reason to pay the money down for a conventional. I have not been hassled or have to provide any additional information than I did for a conventional.
May I ask who you’re going through (if local)? GMFS hassled me about the Jumbo, and I eventually went with a split loan. One conventional and one 2nd Mortgage. Now I’m refinancing that into a Jumbo. My rate (quoted last month, haven’t confirmed and locked yet) on the Jumbo is 4.375%, so 4.125% is really good. I’d like to know who so (and if any points) so I can leverage my loan at that rate as well.
Posted on 5/18/19 at 2:29 pm to LSUtigerME
Iberia
They told me the baseline for conventional to jumbo is 484k.
They told me the baseline for conventional to jumbo is 484k.
Posted on 5/18/19 at 2:38 pm to Tiger Attorney
quote:
They told me the baseline for conventional to jumbo is 484k.
Yes, it appears it changed in 2019. It was $453k in 2018.
If there’s no rate reduction, I’d definitely say keep your cash for the improvements. As long as your finances are sound, it’s no big deal.
Posted on 5/18/19 at 4:51 pm to LSUtigerME
What are the typical stricter requirements with a jumbo loan?
Posted on 5/18/19 at 7:32 pm to LSUtigerME
This sounds like good advice. It’s been a long time since I’ve had a Jumbo loan, but it did come with higher interest rates then. Your rate looks pretty sweet. I’d hold on to my cash if your personal prospects look solid. Ie, don’t lose your job!
Posted on 5/18/19 at 8:50 pm to LSUtigerME
quote:
The max conventional is $453k
Not necessarily depending on where he lives. Max conventional here is much higher.
Posted on 5/18/19 at 11:58 pm to Tiger Attorney
There was no noticeable difference between my first conventional loan and the jumbo we did in 2016.
It's all a PITA
I believe jumbo rates were actually lower than conventional when we locked in. So glad my wife, who literally does none of the financial stuff, called to lock in rates right before the election. Rates spiked for a bit out of reactionary stupidity.
It's all a PITA
I believe jumbo rates were actually lower than conventional when we locked in. So glad my wife, who literally does none of the financial stuff, called to lock in rates right before the election. Rates spiked for a bit out of reactionary stupidity.
This post was edited on 5/19/19 at 12:00 am
Posted on 5/19/19 at 9:36 am to Tiger Attorney
Jumbo loans are “non-conforming”, meaning they don’t fall within the maximum loan amount set by the government. (This is defined by area).
Because they are non-conforming by that metric these loans don’t need to conform to all the other guidelines either and can have a more subjective and customized criteria applied to them by each individual lenders preferences. Shop around for different lenders.
Because they are non-conforming by that metric these loans don’t need to conform to all the other guidelines either and can have a more subjective and customized criteria applied to them by each individual lenders preferences. Shop around for different lenders.
Posted on 5/19/19 at 10:12 am to Tiger Attorney
I closed on a jumbo 3 weeks ago at 3.825. I bought at the perfect moment.
If you're having issues, you could try Hancock-Whitney. I have a relationship there and we closed with little issue. I wonder if the bank you're dealing with has a monthly/quarterly cap on jumbo loans that they can sell? As someone mentioned, Jumbos should have a reduced rate from a lower valued loan.
If you're having issues, you could try Hancock-Whitney. I have a relationship there and we closed with little issue. I wonder if the bank you're dealing with has a monthly/quarterly cap on jumbo loans that they can sell? As someone mentioned, Jumbos should have a reduced rate from a lower valued loan.
Posted on 5/21/19 at 4:45 pm to LSUtigerME
GMFS made you split the loan because they don't have a good JUMBO product. Jumbo loans are bank products . I know this because in my 3 years at GMFS i never closed a JUMBO. In my 6years at Hancock Bank i close almost a JUMBO a month. Jumbo loans have different reserve guidelines and DTI guidelines. Fees are the same from the Bank. I have seen 4.125% on Jumbo 30yrs recently also.
Posted on 7/6/19 at 2:34 pm to hawkeye007
So gmfs doesn’t have a jumbo product or one that’s any good. Someone just recommended me to one of their guys but I don’t know if he normally deals in jumbo products.
Posted on 7/6/19 at 2:52 pm to GWfool
Renasant Bank in Mississippi/Tennessee/Florida has a great jumbo loan package. I closed in 2.5 weeks in 2016. Rate was actually lower. The Jumbo packages are different than confirming packages. However, that doesn’t make them harder.
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