A Jumbo mortgage is used to purchase higher priced homes that require larger loans above the loan limits that are established each year by Fannie Mae and Freddie Mac. There is less demand for investors to buy jumbo loans so Phoenix mortgage lenders charge about ¼% to 1% higher interest rates in order to make their profit.
Arizona mortgage rates vary from each lender so you should comparison shop. The Maricopa & Pinal county Jumbo loan limits start at over $417,000. Most Phoenix mortgage lenders will lend up to $2,000,000 on a jumbo loan. A Phoenix mortgage lender usually keeps jumbo loans as part of their portfolio, which means they service the loans as well.
Some borrowers will take out two conforming loans to save interest. An example of how this works is say you purchase a home for $600,000. You can take out a first mortgage for $400,000 with a 20% down payment and a second mortgage for the remaining balance. Later after you have paid the first down and built equity, you have the option of refinancing or paying off the second. Talk to your Phoenix mortgage broker first before making a decision as to which mortgage product to go with.
There are many different jumbo loans. Some are fixed rates and others are variable.
Jumbo loan rates are higher than conforming loan rates.
You will need a high credit score of at least 720 or more and a 20% or more down payment. You may also be required to deposit six months reserves.
Always shop around because jumbo loan products vary from lender to lender and you may need to check with a few lenders before you find the product that works best for you. You can do some preliminary checking on the Internet to get an idea about rates. Working with a Phoenix mortgage broker makes it easier because they can do the shopping around for you since they work with a variety of Phoenix lenders and know the right ones to go to for each client’s needs.
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Be sure to ask us for a free quote on your next mortgage. We’ll personally work with you and help you through the whole process.
Signature Home Loans LLC does not provide tax, legal, or accounting advice. This material has been prepared for informational purposes only. You should consult your own tax, legal, and accounting advisors before engaging in any transaction. Signature Home Loans NMLS 1007154, NMLS #210917 and 1618695. Equal housing lender.BACK TO LIST