Michael Petrone




Just a few years ago getting a home mortgage was easy, regardless of credit rating or income. It seemed like anyone could be a homeowner which is what triggered the mortgage crisis we are all currently going through. The greed of the mortgage lenders and banks led them to approve anyone they could, and just a few years later, the floor fell out. So, a question that is often asked today is “What is the minimum credit score I need to get a home mortgage?”

Typically, if you have a credit rating below 650, you will face more obstacles when attempting to get approved for a mortgage with half way decent terms, conditions, and interest rates. However, do not let this deter you from pursuing a home mortgage approval. Improving your credit score, even slightly, can equal big savings when applying for a home loan. Every single percentage point of interest you can save equals hundreds of dollars in savings, so it adds up very quickly. Try to pay off any smaller lingering debts that you can first, then attempt to pay down your other debts. Truth be told, a lot of people actually can pay off a large portion of their debts, but choose to make minimum payments and keep the cash in their pockets instead. This is a bad financial decision to make and is usually bad on your credit score. While making the minimum payments is technically OK, it shows no extra effort to pay down your debts. Try to pay down your credit cards to within 25% of their maximum limit, if not more. This proves you will not overextend yourself or credit and can be a responsible, mortgage paying, home owner.

So, to sum it up, getting a home mortgage, regardless of credit score, can vary greatly from person to person and place to place, but a score over 650 will help a lot and make things easier. Keep in mind though that obtaining a home mortgage with a credit rating lower than 650 is not at all impossible, it just takes a little more time and some research that can be easily done on the internet.

J. Hale




A jumbo loan is a loan that is higher than the conforming loan limit. In California, the conforming loan limit in 2006 is $417,000. However, because the price of homes in California has been skyrocketing over the last decade, some members of Congress are trying to raise California’s conforming loan limit. Because of the high cost of homes in the state of California, jumbo loans are not so uncommon. This article explains what you need to know when obtaining a California jumbo mortgage loan:

Location Matters

If you live in an area of California where the average price of a home is above the conforming loan limit, chances are many more lenders will offer jumbo mortgage loans. These high-cost cities will have a higher number of lenders that offer jumbo mortgage loans. However, if you live in a part of California where the average home price does not exceed the conforming loan limit, you may have to shop outside of your local area in order to find a lender willing to finance your jumbo loan.

Expect a Higher Interest Rate

Conventional loans are funded by government sponsored entities, such as Fannie Mae and Freddie Mac. Jumbo loans, however, are not sponsored by these government agencies. Therefore, when you apply for a jumbo loan, you will receive a higher interest rate than you would have on a conforming loan because a jumbo loan represents more risk to your lender.

Refinancing Will Be Difficult

The conforming loan limit on a refinance mortgage in California in 2006 is $208,500. This means that you’ll have to pay your mortgage more than halfway off before you can refinance into a conventional loan. Borrowers should keep this in mind when deciding whether or not a jumbo loan is right for their needs.

Ray Heinson




Many homeowners in luxury home areas know that jumbo home loans have increasingly become more costlier and much harder to get approvals due to the current constraints on credit from lenders. This trend may be showing signs of a turn.

The term “Jumbo” in the housing industry means mortgage amounts that are above the limit to be acquired by government-backed companies, Freddie Mac or Fannie Mae. The current “conforming loan amount” limit for Fannie and Freddie is $417,000 in many areas of the country, but it rises all the way to $729,750 in high-cost areas in the United States.

A major lender in Bank of America who took over Countrywide Mortgage recently started promoting their own jumbo program with considerably lower rates than the other large banks which includes Wells Fargo, Chase and Citibank. Experts anticipate the other banks to follow their lead which could create a welcome stimulant to a hard hit housing market.

The banks do not have a group of institutional investors for their jumbo loan portfolios anymore, so they must keep these loans themselves. However, as more people are looking to save conservatively nowadays, they are using safe investments such as CDs, and money market instruments. As a result, more money is coming into the banks so they are beginning to have more funds to lend to borrowers.

People in search of jumbo loans, however, shouldn’t anticipate an easy approval process. Mortgage searchers will discover various prices and availability across the industry. Borrowers who are seeking to refinance and initially only were eligible for a jumbo loan may fit into the higher loan conforming loan limits if they are in a high cost area.

A conforming mortgage loan will almost always get borrowers the best rate. And nowadays that equals rates in the mid-five percent to low six-percent range. The loans are there but many homeowners complain the requirements are too strict. As an example, some major lenders require borrowers to have at minimum credit score of 720, full documentation and at least 20% down payment (if a refinance, a minimum of 25% equity is necessary). Moreover, borrowers must have a minimum of six months of cash reserves in the bank. It is not uncommon for some lenders to require 25% or more down payment.

Due to differences from lender to lender, borrowers should search online and compare offers based on interest rate and fees for the best deal. While it is true your local credit union may have an attractive rate and low fees at first glance, it could very well be average when compared to online jumbo lenders who do large volume and can offer prospects good options. Consult with neighbors, friends, and associates to get a sense of what is available.

Carrie Reeder




Getting approved for a jumbo mortgage loan online is similar to getting approved for a traditional mortgage when you use a mortgage broker. However, you can expect to find lower interest rates online with better terms.

Choose Your Type Of Jumbo Mortgage Loan

Jumbo mortgage loans offer as many financing options as a conventional mortgage loan. You can pick from a fixed-term loan to an ARM with one to ten years until rates lock in. You can also put zero down, have unverified income and assets, or no ratio test.

Before you apply for a jumbo mortgage loan, determine which type of loan is best for your situation. You can read up on loan terms on mortgage brokers’ websites.

Shop Rates And Fees

Since jumbo mortgage loans can’t be sold off to Fannie Mae or Freddie Mac, you can expect to pay slightly higher rates, as little as 1/8% more than a conventional mortgage loan.

Just like with a traditional mortgage, it pays to compare rates and fees to find the best mortgage. Request quotes from a mortgage broker before deciding on a jumbo mortgage lender. Also, request information on the fees included in the loan, which must be disclosed according the federal law.

Tips For Quick Approval

To speed up your application process with a mortgage lender, complete as much information online. Applications completed online are fed directly into the lender’s databases, which can then be verified almost instantly.

Also be sure to complete the application. Any fields left blank or only partially completed will cause a delay in the process as a person will have to verify and correct the information. And, double-check for any spelling errors in your application, which will result in the databases not correctly matching your information with the lender’s sources.

After Mortgage Approval

After you are approved for you jumbo mortgage, continue to keep in touch with the mortgage lender throughout the process. Email and phone calls replace office visits and ensure funds are process on time. You can also avoid any problems by submitting needed information about the property before you receive the request in the mail.

To view our list of recommended mortgage lenders online, visit this page:
Recommended Mortgage
Lenders Online.

Luke P Helm




At one point in 2007, there were over 10 California reverse mortgages that were available for “jumbo-sized” loan amounts. Due mainly to the decline in real estate values and the resultant banking industry problems, now the number has dropped to three programs.

A jumbo reverse mortgage in California is typically used when the loan amount exceeds $200,000 to $280,000. When the amount of money needed by the senior applying for the loan is above those amounts, a jumbo loan is required because the FHA program (non-jumbo) has low loan limits. For most densely populated counties in California, FHA only recognizes the first $362,790 of home value, and ignores the rest, in calculating the amount of money available to the senior homeowner.

There are hundreds of thousands of homes in California owned by seniors that could benefit from the jumbo program. Last year, those seniors had many options to choose from. But now most large banks have pulled back their California reverse mortgage programs or cut them entirely. The largest lender in the business, Financial Freedom, is on the ropes as its parent company, Indy Mac Bank has been taken over by Federal Regulators due to its poor financial condition. Many California seniors do not want their loan to be with a failing financial institution, and are looking for other alternatives.

Bank of America cut their California reverse mortgage program by suspending it as an offering through their broker network, allowing it only to be offered by their retail branches. Financial Freedom took this same step too, which indicates that Bank of America’s decision is a possible a sign of poor financial health and an inability to continue to support their California programs. One reason for these developments is that these and other lenders have suffered huge losses due to the subprime mortgages that they offered in our state. With mounting losses, these lenders find it increasingly difficult to borrow money at low rates and lend it out to consumers. As a result, they do not have ample funding to continue to support the demand for home loans, and are forced to make difficult cuts in the programs that they offer.

Fortunately, there are still a couple jumbo California reverse mortgage programs that are offered by lenders who steered clear of the subprime mess. One of them offers a loan with competitive interest rates and a line of credit feature. This lender receives their funding from a European bank that is insulated from our domestic banking problems. Another California lender is providing a fixed rate jumbo program. Seniors will be able to sleep well at night with this product, knowing that their interest rate will not change and they will make no payments for as long as they live in their home. This bank also did not make risky home loans and as a result, will be in business for many years to come.

While the options for California seniors have diminished, there are still several viable lenders. Seniors can move forward confidently with these loans and enjoy a financially secure retirement.

Michael Branson




Many borrowers look at a few of the important aspects of their proposed jumbo reverse mortgage. How much money will they get, How much are the fees, what is the starting interest rate but so often these are about the only items they concern themselves with.

Some borrowers also insist on getting fixed rate reverse mortgages, but the fixed rates typically insure the borrower of paying an interest rate way above the current adjustable rates available and based on the averages of the indexes upon which the jumbo rates are ultimately determined, borrowers would have to go back over 17 years to find a historical average that would even approach making the higher fixed rates worthwhile. In other words, borrowers choosing today’s jumbo fixed rates would have lost money to their adjustable counterparts as an average for more than the last 17 years. No one can predict the future, but the last 17 years include some very volatile markets and the borrowers would still be worse off at today’s low rates with a fixed rate than going through those volatile markets with an adjustable rate.

So for the borrower who is really trying to determine the lowest cost reverse mortgage for proprietary or jumbo reverse mortgage programs, they need to also review the missing element the margin. The margin is the amount that is added to the index to determine at what rate the loan will accrue interest over the life of the loan.

In other words, two loans with the same index will accrue interest differently if one has a lower margin. Many reverse mortgages such as the Financial Freedom Cash Advantage program have a margin of 3.5%. The Independence Plan available through All Reverse Mortgage Company offers a 2.1% margin as an option for borrowers who are concerned with interest rates and how they will affect the future equity.

The margin is the hidden factor. The origination fee for many of the jumbo proprietary programs is around 2% of the principal lending limit, while the fee on the Independence Plan is .5% of the appraised value, which usually works out to the borrowers paying about half for the Independence Plan.

If you are considering a reverse mortgage on a jumbo or proprietary program, take a good look at the amortization schedules. Borrowers can save thousands of dollars over the years by choosing a program that accrues interest at a lower rate and this area of the decision is so often over-looked.

If your main motivation is to get the most money available and you aren’t worried about the interest rates or the effects on your equity, then you should let your reverse mortgage specialist know this up front. Fixed rates also sound great, but if you have to pay 8 or 9 percent or more to get one, and based on historical averages the rates never pay off by having it fixed, you have to ask yourself if the higher fixed rates are worth it. But if you want a program that will give you an excellent initial draw while still accruing interest at the lowest rate possible, then the Independence Plan with the 2.1% margin may be just what you were looking for.

Any way you choose to go, a qualified reverse mortgage specialist is there to be sure your needs are met and should be willing to show you all options.

Ian Parks




What exactly is considered a jumbo refinance?

Welcome to the big leaves of home mortgage refinancing. This kind of refinance is when a mortgage exceeds the conforming limit set by Fannie Mae or Freddie Mac. These federally chartered institutions provide funding to retail mortgage lenders. The limit is adjusted annually based on average home prices.

For 2007 the limit for of these refinances was $420,000 for one single family home in the CONUS. If the increase has caused your loan to now qualify as conforming then you may have a possibility of benefit from refinancing.

This is mostly due to mortgages over the conforming limit will carry a slightly higher rate than conforming loans involved in a jumbo refinance. For a 30 year fixed rate mortgage you would most likely be paying about one eights to one quarter of a percent more although in some circumstances rate can be dramatically higher. The reasons for these higher rates are that jumbo mortgages carry an extreme amount more of risk to the lender and usually invovle extra underwriting which costs are in the end and as usual passed on to the home owner seeking the jumbo refinance.

The conforming limit for 08 is the exact same as it was in 06 however in 06 the limit saw a 15% increase over 2005 the largest ever jump in a single year in reference to jumbo refinances.

Their is an easy example for you in consideration of a jumbo refinance: If you took out a 400k fixed rate mortgage at 6% when a loan for that amount was considered a jumbo, If you refinance today your mortgage would no be well under the conforming limit and you would be able to take advantage of the lower for a 30 year fixed rate mortgage lowering your rate to 5.75% works works out to almost 64 every month reducing it by half a percent would save over 125 a month.

Remember that refinancing involves costs of its own and incurring these costs for a very small reduction in the interest rate may not be worth it, for some borrowers however refinancing from a jumbo to a conforming mortgage can save thousands of dollars over the long term.

Martin Lukac




Mortgage rates such as Jumbo rates vary quite a bit. Jumbo loans often provide you with options such as fixed-rates. Still, the fixed rate options vary. Sometimes these rates change. Usually the rates established are based on the changes in the Treasure Bill Rates, Truth in Lending Laws, and lastly the common market rates.

Jumbo mortgage rates often rise above a definite limit. Fannie Mae and Freddie Mac programs often set these limits.

The mortgage rates or else the limits stream from annual charts, which can range from $334,000 more or less. The rate limits of course are relevant to specific states. For example, Alaska may have a limit roughly speaking at $560,000.

Jumbo mortgage rates are also known as “Non-Conforming” mortgage loans. These loans accrue interest, in addition to “originator premium fees.”

The Jumbo rates or limits calculate in units also. For example, if a single-family takes out the Jumbo mortgage, they may only qualify for $300, 000 based on the set limits. The units are calculated based on the large amount the borrower is allotted from the lender.

Jumbo loans often attach high rates of interest. This is for the reason that Freddie Mac and/or Fannie Mae is not legally qualified to fund these loans over ‘the market limits.” Moreover, if FNMS, i.e. the Federal National Mortgage Association, and FHLMC or the Federal Home Loan Mortgage Corporation, does not have the power to fund the jumbo loans over set limits. Consequently, these mortgage rates on jumbo loans may increase.

For this reason, borrowers are wise to consider setting limits on the amount borrowed to stay away from expensive mortgage rates.

While you have a couple of options available with the Jumbo loans, it is wise to look around and check the mortgage rates on other loans. One of your options is the common ARM loan, or else the Adjustable Rate Mortgage. (ARM)

ARM mortgage rates are set agreements connecting lenders and borrowers, i.e. the lender(s) may consent to lending mortgage rates lower than the market rates. These rates may apply at the beginning of the borrowed amount, yet the borrower may have to agree with adjusted mortgage rates rooted from the market rates, in addition to the loans term.

Most people prefer fixed-rate loans. The mortgage rates often remain constant whether the market rises or falls. In other words, you may agree upon 5.76% mortgage rates and continue to pay this rate throughout the course of the loan despite whether the market rates change or not.

When searching for mortgage rates, your best bet is to shop around so that you find the best deals that suit your budget.

David Johanson




If you have a high-value home, specifically one that is at least in the range of $500,000, then you can get a jumbo reverse mortgage. A jumbo reverse mortgage is similar to the regular mortgage plans but the only difference lies with the payout options. Affordability is a great issue when opting for a jumbo reverse mortgage. If you need to look for such a mortgage plan in the U.K., you should perform market research.

Choose The Right Plan

However, in spite of thorough market research, people have been known to choose the wrong mortgage plan, which costs them heavily in the future. It is advisable that you do not approach the mortgage lenders directly, as you would engage the services of a mortgage broker. He will act as a mediator with the mortgage lenders for you and enable you to get the best deal. Since the brokers are people skilled in their trade, they know the ins and outs of it well.

Specify Your State To Get Your Quote

A jumbo reverse mortgage is advisable for homeowners with high-value homes, but don’t get confused with the general quotes that you find on the Internet. To get a quote for your home, you should specify your state and likewise the rate will be quoted to you. Going in for a mortgage plan may be as easy as signing on a piece of paper, but having chosen the right plan is the tricky part for you.

If you choose a plan which is going to eventually eat up more of your money, then there is no point in the mortgage itself. A mortgage broker will help you decide on the best option for you and then will negotiate on your behalf with the jumbo reverse mortgage lender.

Joseph Kenny




A jumbo mortgage means a larger than normal size mortgage. While getting a jumbo size anything usually means getting a good deal – especially when it comes to hamburgers and fries – it may not mean the best deal in the case of mortgages, however. Here are a few things you need to know about jumbo mortgages.

The largest mortgage lenders in the United States – Freddie Mac and Fannie Mae, determine mortgage sizes. They determine what is to be considered the standard size each year. Anything above that amount is considered to be what is called a jumbo mortgage. Currently, as of 2006, the amount is set at $417,000. This amount is higher for the Hawaiian Islands, Alaska, and in the U.S. Virgin Islands.

A jumbo mortgage, also referred to as a non-conventional, or non-standard mortgage, also comes with jumbo interest rates. In other words, the amount of interest that you pay for your larger than usual mortgage also comes with higher interest. Part of the reason for this is because the lenders believe that they are at a higher risk for possible loss. Like any other type of loan, though, the interest amounts do vary from one location to another.

For a larger home, jumbo mortgages may be just about the only option you have, but there are still ways around it if the home is not priced too high. Some companies offer a solution in the form of a package mortgage deal – getting a first and second mortgage at the same time. By financing the first mortgage at 80%, you can then get financing on a second mortgage to cover the balance. By going this route, you may also be able to avoid having to pay for private mortgage insurance, too.

A jumbo mortgage is available in either a fixed rate mortgage or as an adjustable rate mortgage. You do need, however, to pay attention to the economy at the time in order to know which way is best at the time. Both have their advantages, and both have their drawbacks depending on which way the economy is going.

Some companies are even offering no doc loans on their jumbo mortgages. Typically this type of mortgage comes with higher interest but some mortgage companies declare that their rates are the same for doc and no doc alike. Other forms may be developing so you will need to do some research to see if another form of jumbo mortgage suits your needs a little better.

As with any loan, you need to do some comparison shopping in order to find the best deal. This means learning the terms that may be involved. The easiest way is to go online and go to a broker website where you can get several mortgage quotes with one application. Separate the principal from the interest and then compare that with the other fees that apply. Before long you will have the best deal. You also may want to investigate the company some, too, if you have not heard of them before.