Jumbo Loans
Rate and Term Refinance
- Up to 90% LTV (Loan-to-Value)
- 680 Minimum Credit Score
- Loan Terms from 10 to 30 Years
- No Mortgage Insurance Option
- Loan Amounts Over $726,200
Cash-Out Refinance
- Up to 90% LTV (Loan-to-Value)
- 680 Minimum Credit Score
- Loan Terms from 10 to 30 Years
- No Mortgage Insurance Option
- Loan Amounts Over $726,200
Jumbo refinance loans are mortgage loans that are used to refinance existing jumbo loans. A jumbo loan is a type of mortgage that exceeds the conforming loan limits set by Fannie Mae and Freddie Mac, which are the government-sponsored enterprises that purchase mortgages from lenders. Jumbo refinance loans are typically used by borrowers who have higher loan amounts and require different terms or features.
Here are some key points about jumbo refinance loans:
- Loan Amount: Jumbo refinance loans are designed for borrowers who have loan amounts that exceed the conforming loan limits. The exact loan limits can vary by location but are generally higher than the standard conforming loan limits. In most areas, jumbo loan limits start at $726,200 (as of 2023), but they can be higher in high-cost areas.
- Interest Rates: Jumbo refinance loans often come with higher interest rates compared to conforming loans. This is because jumbo loans carry more risk for lenders due to their larger loan amounts. However, interest rates can vary based on factors such as creditworthiness, loan-to-value ratio, and market conditions.
- Loan-to-Value (LTV) Ratio: Jumbo refinance loans may have stricter LTV ratio requirements compared to conforming loans. Lenders typically prefer lower LTV ratios to reduce their risk. A lower LTV ratio indicates a larger equity position in the property.
- Credit Requirements: Jumbo refinance loans generally have stricter credit requirements compared to conforming loans. Lenders may require higher credit scores, lower debt-to-income ratios, and a strong credit history to qualify for a jumbo refinance loan.
- Documentation: Like any mortgage refinance, jumbo refinance loans require documentation to verify income, employment, assets, and other financial information. Lenders may have specific requirements regarding the documentation needed to qualify for a jumbo refinance loan.
- Closing Costs: Jumbo refinance loans involve closing costs, which can include lender fees, appraisal fees, title search fees, and other expenses. These costs can be substantial due to the larger loan amounts associated with jumbo loans. It's important to consider the closing costs when evaluating the financial benefits of refinancing.
- Private Mortgage Insurance (PMI): Jumbo refinance loans may require private mortgage insurance (PMI) if the loan-to-value ratio exceeds a certain threshold. PMI is an additional monthly expense that protects the lender in case of default. However, some lenders may offer options to avoid PMI even with higher loan-to-value ratios.
It's important to consult with a lender or mortgage professional experienced in jumbo loans to understand the specific requirements and benefits of a jumbo refinance loan based on your individual circumstances. They can guide you through the process and help determine if a jumbo refinance loan is the right option for you.