Jumbo loans are back! And with Great Terms!
For those looking to buy, sell, or refinance luxury residential property, the wait for affordable available financing appears to be over. New Jumbo loan products are beginning to be made available to top tier Mortgage Brokers as a trial run for more expansive availability to the broader market. Three fantastic products are currently available to my firm. One is a 30 year fixed loan with rates starting in the high 5’s. LTV’s to 80%, loan amounts to $2m.
The second choice for Jumbo is a 7 yr ARM. Although adjustable rate mortgages have taken a beating in the public’s eye, an ARM can be the perfect tool for the right borrower. With rates in the high 3’s to low 4’s, a competent Mortgage Advisor can compare the 30 fixed with the ARM, run out an amortization schedule, and illustrate the term savings to see if the results match with the borrower’s financial goals. Loan amounts to $3m
The third Jumbo product to consider would be a first lien line of credit. This is a complicated product that does not work for all borrowers. Minimum credit score of 700 (most states), minimum 25% down (or equity), and positive cash flow. Loan amounts to $2m, higher loan amounts case by case. There is a huge upside to this product in that the loan can be paid off years early, saving tens or even hundreds of thousands of dollars. Again, I will emphasize that this is a unique product and is not for everyone.
All three Jumbo products are available for purchase or refinance transactions.