Request A FREE Consultation

Leave this empty:

Dont Worry! We will never sell or lease your
information to any third party.

Stay Connected

Starwest On Facebook Find Us

Starwest On Twitter Follow Us

News and Updates Read Our Blog

Kyle Saunders
kyle@starwestmortgage.com

Logan Smith
logan@starwestmortgage.com

Get In Touch

Starwest Mortgage Corporation
1818 E. Southern Ave, Suite 15C
Mesa, AZ  85204
Info@StarWestMortgage.com

Arizona: (480) 962-5665
Tucson: (520) 303-9406
Utah: (801) 214-1777
Colorado: (720) 644-8078
Fax: (480) 545-0586

NMLS 164496 Arizona MB
0905975 Utah 5941296-NMLC
Colorado Registered MB

Jumbo Mortgage

Get A
Custom Mortgage
Rate Quote

Jumbo loans are mortgages that are larger than the standard loan size. Because jumbo mortgages exceed the “conforming” loan limit of $417,000, the maximum loan amount documented for purchase by Fannie Mae and Freddie Mac, these loans are considered “nonconforming” loans. Most jumbo loans are presently originated with big banks that intend to keep the mortgages on their books instead of selling the loan on the secondary market.

Initiating in 2007, a massive credit squeeze and falling property values began to scare banks away from lending in the jumbo market. Jumbo loans have made a gradual comeback, but with much tougher guidelines. To qualify for a jumbo loan in this lending environment, the borrower can expect to meet at least the following credentials:

 

These nonconforming so called “portfolio” loans epitomize the back to basics old-fashioned lending style, in which institutional lenders make profits by charging higher interest rates on lending than they pay on their consumers’ deposits. The past few years, interest rates paid to customers on deposits are historically low, but they will rise someday. Banks tend to benefit from jumbo adjustable-rate loans (ARMs) when rates rise after the initial fixed period. The interest rates on jumbo ARMs will rise with the rates paid on consumer deposits. Therefore, jumbo ARM products are priced more favorably than most fixed-rate products. The most popular loan for a jumbo mortgage is currently the 5/1 ARM, which possesses an introductory fixed-rate for the first 5 years of the loan amortization and then adjusts annually with protective caps thereafter.

Because jumbo loans are primarily portfolio mortgages, refinancing guidelines are similar to purchase guidelines for owner-occupied homes. Loan-to-value and credit score requirements have a wide-range variance between lenders. For example, a rate and term refinance will generally limit the loan-to-value to 70% or 75% loan-to-value. Cash-out refinance loan-to-value and credit score stipulations are likely even more conservative.

With a less standardized jumbo lending environment, it pays to use a broker to shop for the best jumbo loan as these types of mortgages are no longer market commodities.

 

Jumbo Mortgage Highlights

Calculate the number of months to break-even if you refinance the loan.
Refinance Break-Even Point

Learn about alternative loan programs that may fit your goals.


Conventional Mortgage


FHA Loan


FHA Streamline


VA Loan


Why you should choose Starwest Mortgage for your home purchase:

 

NO CLOSING COST Mortgage!

Starwest pays for all the closing costs associated with the transaction. None of these fees are rolled onto the loan balance. Learn More

Apply Now