Best Jumbo Lenders – How to Source the Best Mortgage Rates

best jumbo lenders

Best Jumbo Lenders – First, what is a jumbo mortgage?

Jumbo loans and mortgages are similar to traditional mortgages, only they are larger.  Some would argue that the name is somewhat silly seeing that these mortgages are typically a higher-end type borrower but the name has founds its place within the mortgage industry.  Generally speaking in most markets, any mortgage over the $417,000 Conventional limit is considered a non-conforming or jumbo mortgage.  There are some exceptions in “high cost” areas of the country but for this article we will stick to the standard $417K+ realm for finding the best jumbo lenders.

Best Jumbo Lenders – Guidelines to Watch Out For:

Due primarily to the higher loan amount and overall risk of these these mortgages, jumbo loans typically come with more stringent lending guidelines than their Conventional counter parts.  First, the down payment(or equity, on a refinance) requirements are generally more strict, typically 20%-25% down at a minimum.  Next, expect the debt-to-income ratios to be a bit more restrictive than a Conventional loan.  Another aspect that is different will be the cash “reserve” requirement.  Typically lenders will want to see at least 6-12 months worth of mortgage payments in the bank, in liquid form.  This helps ensure that the borrowers can continue making payments if something unexpected were to occur such as a job loss, large home/auto repairs, or any other emergency which may cause money to get tight for a stretch.  Even the best jumbo lenders may also require additional documentation, such as three years worth of tax returns vs just two, additional asset statements, and often times additional documentation pertaining to corporate entities owned by the borrowers.

Best Jumbo Lenders – About Interest Rates?

As you may expect, jumbo loans typically carry a bit higher interest rate.  This is not only due to some added layers of risk, but also because they are generally “portfolio loans” or mortgages retained by the lending institution after closing and not sold in the secondary market.  Because portfolio loans are “shelved” and retained, the loss is much greater if a borrower were ever to go into default.  For this added risk, the interest rates are generally anywhere from .25% – 1.00% higher depending on the loan term and other layers risk factors.  This sometimes can work to a jumbo borrower’s favor, however.  Since the portfolio lender has full control over structuring the loan, they may sometimes grant special ultra-low interest rates to very well-qualified borrowers and/or borrowers who also happen to have large asset accounts with their lending institution.  That being said, you can sometimes put your current bank among the best jumbo lenders by virtue of simply having large asset accounts there and being on their “VIP list” of sorts.

Remember, sometimes your best place to find the best jumbo lenders is your own local bank.  If you have large asset accounts at a local bank, or you can move some money there, it is quite likely that bank may grant you special rate incentives on your mortgage in return.

In conclusion, jumbo loans are just larger mortgages with more strict guidelines and slightly higher interest rates.  Though they are often times “portfolio loans” retained by the lending institution, the process for obtaining a jumbo mortgage is generally the same as that of a Conventional loan.

Author Brad Troendle of PNC Bank is a seasoned mortgage professional dedicated to bringing his subscribers relevant and useful information on how to compare jumbo mortgage rates. Want a free jumbo mortgage quote? Check out the following link for more a FREE consultation and expert advice on helping you identify the best jumbo lenders.

1 commentback to post

Other articlesgo to homepage

Simple Fixes To Help Your Home Sell More Quickly

Simple Fixes To Help Your Home Sell More QuicklyComments Off on Simple Fixes To Help Your Home Sell More Quickly

A few simple ways to help make your home more buyer-ready.

Partnering With An FDIC Bank by Gus Dahleh

Partnering With An FDIC Bank by Gus Dahleh(1)

Why is partnering with an FDIC Bank a wise decision? First of all, Partnering with an FDIC bank will essentially allow access to funds with very low interest rates.  The banks can borrow money from each other at the interest rate at which FDIC Banks lend money to each other.  FDIC banks are not subject

Locating the Best Milwaukee Mortgage Rates by Gus Dahleh

Locating the Best Milwaukee Mortgage Rates by Gus Dahleh(1)

Milwaukee Mortgage Rates by Gus Dahleh: Due to today’s historically competitive loan rates, a large amount of folks throughout the Windy City are generally asking about how they could attain the most beneficial Milwaukee refinance rates rates. The following are a couple of pointers to help consumers identify the hottest deal.: Broker Vs. Banker: Generally

How to Find the Best Washington Mortgage Rates

How to Find the Best Washington Mortgage RatesComments Off on How to Find the Best Washington Mortgage Rates

Finding the Best Washington Mortgage Rates: With today’s historically competitive mortgage rates, many folks within Seattle, Tacoma, Spokane, and Vancouver appear to be asking what the best way is to obtain the best washington mortgage rates. Here are a few suggestions to assist consumers in identifying the best mortgage rates: Broker Vs. Banker: There can

15 vs 30 Year Mortgage – The Pro’s and Con’s

15 vs 30 Year Mortgage – The Pro’s and Con’s(1)

15 vs 30 Year Mortgage If you’re like many homeowners you’ve probably contemplated going with a 15 year mortgage vs the more common 30 year fixed program. So what are differences and I can I get a better rate by going with a shorter term? Below are some pro’s and con’s associated with the 15

read more
Fill out my online form.

Contacts and information

Most Popular Articles
VA Streamline | IRRRL | VA Streamline Refinance Loan
Compare Mortgage Rates the Smart Way
VA Streamline Refinance Rates - How to Get the Best Deal
Best Refinance Lenders - How to Find the Pros

Hot Rates, Clear Terms, Cool Savings

Social networks

Most popular categories

© 2012 HotRateQuote.com theme by Joe Design All rights reserved. Compare Mortgage Rates Lower Interest Rate