Are you considering applying for a jumbo mortgage loan? If so, it’s an excellent idea to seek the advice of a professional financial advisory agency. They’ll assist you with determining if a jumbo loan if the best decision for you in your current financial state, and provide information on other options that may be available to you. Applying for any sort of loan, especially a jumbo loan, is a large step, and it’s helpful to have access to a personal advisor who’s dedicated to assisting you.
What is a Jumbo Loan?
Mortgage loans that are above the conventional conforming loan limits are classified as jumbo mortgage loans. As of now (2014), the current limit for conforming loans is $417,000 for single-family homes. In high cost areas, however, the limit is $625,500. Therefore, if you needed a loan that exceeds the designated limit for your state, you would need to apply for a jumbo loan or consider other available options.
Setbacks to Consider
There are some advantages to jumbo loans, such as savings through refinancing, and steadily lowering interest rates. However, there are a couple of potential disadvantages you should consider with the help of a qualified advisor you can trust. One of the biggest drawbacks to receiving a jumbo mortgage loan is the high interest rates. While they’ve been gradually dropped over the years, interest rates on a jumbo loan are about 50% higher than traditional loans. Another drawback is the fact that they’re hard to acquire. Applicants need to provide proof of their earnings, assets, and credit score to underwriters, showing they can afford to repay what they borrow.
Professional Advice
Working with a financial advisor provides a number of benefits, as they’ll have the knowledge to consistently point you in the right direction. They’ll educate you on the benefits and drawbacks of jumbo loans, thus saving you considerable amounts of time and money. Whether you’re thinking of applying for a jumbo mortgage loan, have questions about refinancing, or would like find another solution to applying, they’ll simplify the process and provide the answers you need. They’ll aid you in making intelligent financial decisions that will help you get the most out of your financial choices.
Westwood Wealth Management offers skilled financial services to those considering applying for refinancing a jumbo loan.
