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Jumbo Loan Refinancing

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In past topics, we covered jumbo loans, which are typically used to finance high-value homes and larger than standard mortgages. Many people get approved for jumbo loans that have high rates in this somewhat riskier mortgage. If you have a jumbo loan, you may want to refinance and restructure as you pay it off.  Check today and see if you can get better interest. This week, Stonebriar Mortgage is here to educate homeowners throughout California as well as Dallas, Boerne, Fair Oaks Ranch, Helotes, and San Antonio, TX about jumbo mortgage loan refinancing.

How Do I Qualify for a Jumbo Loan?

Jumbo loans are also known as non-conforming loans because they exceed limits established by government agencies. For this reason, someone may need to undergo more scrutiny to seek approval for a jumbo loan. These loans are not approved for government backing, so you will also need a good financial history to qualify to refinance a jumbo mortgage.

How to Refinance a Jumbo Mortgage

Qualifying to refinance a jumbo mortgage may prove very difficult and will come with additional fees, since some jumbo loans are quite large. The size of the loan means that interest payments can really add up over time, so it may be worth the effort to refinance and save. You can do a financial projection to see if the initial costs warrant the savings. If you decide to go for it, prepare to provide ample documentation.

Many lenders desire to see a good credit score and loan-to-value in order to approve a jumbo loan refinance. Some people have adjustable-rate mortgages and are looking to save on interest, others apply in order to pull out cash from the home. Your debt-to-income ratio must be under 43%. You will also need to show proof of other sources of cash and financial reserves. There may also be limits on the number of properties you can hold mortgages on in order to qualify. The team at Stonebriar Mortgage is here to assist homeowners in The Colony, Flower Mound, Lucas, McKinney, TX and beyond through this process.

Gathering Documents to Refinance

In the process of refinancing a jumbo loan, there is ample documentation that you will need to gather. You will want at a minimum:

  • At least two years of tax returns.
  • At least two years of W-2s.
  • At least one to two months of pay stubs and bank statements, including ample evidence of commissions earned (if needed).
  • If you are self-employed, you will need to provide profit and loss statements for your business.

Finding the Right Time to Refinance

Be sure you look closely at your credit, debt-to-income, and loan-to-value in order to learn if it is time to refinance your jumbo mortgage loan. Qualified professionals are here to help. Stonebriar Mortgage works with Allen, Frisco, Highland Park, Plano, and Prosper, TX homeowners for Jumbo Loan Refinancing. Please contact our office with any additional questions.

Jumbo Loans

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Are you looking to buy a beautiful home in Dallas, Texas or California? Are you afraid you won’t be able to secure the financing that you need? A jumbo loan may be just the solution for you. This type of mortgage product can be used to finance home loans that exceed restrictions set by Government-Sponsored Entities (GSEs) like Fannie Mae and Freddie Mac. Stonebriar Mortgage is here to discuss jumbo loans for Dallas, Texas and California dream homes. Read on below for more information.

Jumbo Loan Essentials

There are two types of loans: conforming and non-conforming. If a loan is non-conforming that means it exceeds limits set by the GSEs. The limits for conforming loans are updated annually to reflect current home prices, and may be adjusted for more expensive areas, like in California. A non-conforming loan will not get approved for government backing.

In addition, a higher down payment may be required to secure this larger mortgage. You may even be able to provide enough money down to bring the loan into conforming standards for other government programs, such as FHA or VA loans. It is good to explore your options and apply, then adjust down payments and apply again if rejected.

Applying for a Jumbo Loan

When you go to apply for a jumbo loan, there will be a deep review of your finances. The lender will want to verify if you are able to repay the large loan amount using several factors. Here are some of the items considered:

  • Your credit score: usually you will need a good one to get approved.
  • Current debt owed and your debt-to-income ratio.
  • Whether the loan is within conforming or non-conforming rates.
  • Whether you can get Private Mortgage Insurance (PMI).
  • Whether you can offer a down payment (usually they want to see 10-20%).
  • Your current cash reserves and assets.
  • Your home ownership or rental history.

Jumbo Loan Packages

When you secure a jumbo loan, you will need to obtain Private Mortgage Insurance (PMI). PMI protects the lender in case you default on your payments. The cost of this insurance will be factored into your monthly payments. Once you pay down more of the loan, you can negotiate to have the PMI requirement dropped.

Interest rates for a jumbo loan may be higher, due to their increased risk. Perhaps you can investigate an adjustable-rate mortgage, then, apply to refinance the loan down the line if you do not like the rates that you are given. There will be closing costs associated with securing the original loan and with refinancing the loan again.

Whether or not you decide to get a jumbo loan, Stonebriar Mortgage is here to help Texas and California residents secure their dream home. Contact our friendly team today with any questions.

What are Jumbo Loans?

by

Are you looking to buy a beautiful home in Dallas, Texas or California? Are you afraid you won’t be able to secure the financing that you need? A jumbo loan may be just the solution for you. This type of mortgage product can be used to finance home loans that exceed restrictions set by Government-Sponsored Entities (GSEs) like Fannie Mae and Freddie Mac. Stonebriar Mortgage is here to discuss jumbo loans for Dallas, Texas and California dream homes. Read on below for more information.

Jumbo Loan Essentials

There are two types of loans: conforming and non-conforming. If a loan is non-conforming that means it exceeds limits set by the GSEs. The limits for conforming loans are updated annually to reflect current home prices, and may be adjusted for more expensive areas, like in California. A non-conforming loan will not get approved for government backing.

In addition, a higher down payment may be required to secure this larger mortgage. You may even be able to provide enough money down to bring the loan into conforming standards for other government programs, such as FHA or VA loans. It is good to explore your options and apply, then adjust down payments and apply again if rejected.

Applying for a Jumbo Loan

When you go to apply for a jumbo loan, there will be a deep review of your finances. The lender will want to verify if you are able to repay the large loan amount using several factors. Here are some of the items considered:

  • Your credit score: usually you will need a good one to get approved.
  • Current debt owed and your debt-to-income ratio.
  • Whether the loan is within conforming or non-conforming rates.
  • Whether you can get Private Mortgage Insurance (PMI).
  • Whether you can offer a down payment (usually they want to see 10-20%).
  • Your current cash reserves and assets.
  • Your home ownership or rental history.

Jumbo Loan Packages

When you secure a jumbo loan, you will need to obtain Private Mortgage Insurance (PMI). PMI protects the lender in case you default on your payments. The cost of this insurance will be factored into your monthly payments. Once you pay down more of the loan, you can negotiate to have the PMI requirement dropped.

Interest rates for a jumbo loan may be higher, due to their increased risk. Perhaps you can investigate an adjustable-rate mortgage, then, apply to refinance the loan down the line if you do not like the rates that you are given. There will be closing costs associated with securing the original loan and with refinancing the loan again.

Whether or not you decide to get a jumbo loan, Stonebriar Mortgage is here to help Texas and California residents secure their dream home. Contact our friendly team today with any questions.