Jumbo Mortgage Question (loan, premium, pre-approved, credit score)

[r20926]

I am about to go into contract on a home in the NYC/LI area for $537,500. I plan on putting 20% down, my wife and I have great stable jobs, 800+ credit score, etc... We should have no problem in getting a mortgage at a great rate.

We are looking to do a conventional 30 year mortgage.

Putting 20% down would be 107,500, which would put my loan amount at $430,000 (jumbo loan), resulting in a $13,000 difference from getting the best rate with a loan amount of $417,000.

Would it be wise to put down $120,500 and get the best rate possible?

Is there a big difference in rates when borrowing $430,000 with 20% down then $417,000 with more money up front?

We can afford to put down the extra $13,000 and cover closing costs, but would like to hold on to the $13,000 for some home improvements if it does not effect our rate substantially.

Thanks for your help and advice in advance....

[aneftp]

Originally Posted by r20926

I am about to go into contract on a home in the NYC/LI area for $537,500. I plan on putting 20% down, my wife and I have great stable jobs, 800+ credit score, etc... We should have no problem in getting a mortgage at a great rate.

We are looking to do a conventional 30 year mortgage.

Putting 20% down would be 107,500, which would put my loan amount at $430,000 (jumbo loan), resulting in a $13,000 difference from getting the best rate with a loan amount of $417,000.

Would it be wise to put down $120,500 and get the best rate possible?

Is there a big difference in rates when borrowing $430,000 with 20% down then $417,000 with more money up front?

We can afford to put down the extra $13,000 and cover closing costs, but would like to hold on to the $13,000 for some home improvements if it does not effect our rate substantially.

Thanks for your help and advice in advance....

The conforming loan limits for NYC/Long Island are actually 625K. I think Fannie/Freddie do still charge a very small premium for higher (conforming loan limits).

http://www.fhfa.gov/webfiles/22768/H...012_HERA_Z.pdf

So you are not in jumbo loan territory.

[r20926]

Originally Posted by aneftp

The conforming loan limits for NYC/Long Island are actually 625K. I think Fannie/Freddie do still charge a very small premium for higher (conforming loan limits).

http://www.fhfa.gov/webfiles/22768/H...012_HERA_Z.pdf

So you are not in jumbo loan territory.

That's great news, thanks so much for the information.

[grodri02]

Hello,

I am in sort of the same situation as you. My home is being built at the moment and have not selected (eventhough we have had pre-approval letters from banks) a mortgage banker. Who is it that you using if you dont mind sharing? I have been pre-approved with americanamortage and continental homes. What rates/fees are they quoting you?

Thanks

Originally Posted by r20926

I am about to go into contract on a home in the NYC/LI area for $537,500. I plan on putting 20% down, my wife and I have great stable jobs, 800+ credit score, etc... We should have no problem in getting a mortgage at a great rate.

We are looking to do a conventional 30 year mortgage.

Putting 20% down would be 107,500, which would put my loan amount at $430,000 (jumbo loan), resulting in a $13,000 difference from getting the best rate with a loan amount of $417,000.

Would it be wise to put down $120,500 and get the best rate possible?

Is there a big difference in rates when borrowing $430,000 with 20% down then $417,000 with more money up front?

We can afford to put down the extra $13,000 and cover closing costs, but would like to hold on to the $13,000 for some home improvements if it does not effect our rate substantially.

Thanks for your help and advice in advance....

[bbc0218]

May I ask as to when a loan is considered as conforming limit loan or jumbo loan? Is it the loan amount before down payment or the amount after considering down payment? Let's say for example that I would like to borrow $500,000 and I would put a 20% downpayment. Would the determination whether the loan is conforming or a jumbo loan be based on the principal amount of $500,000 or on $500,000 less $100,000 which is equivalent to $400,000?

[thelopez2]

Originally Posted by bbc0218

May I ask as to when a loan is considered as conforming limit loan or jumbo loan? Is it the loan amount before down payment or the amount after considering down payment? Let's say for example that I would like to borrow $500,000 and I would put a 20% downpayment. Would the determination whether the loan is conforming or a jumbo loan be based on the principal amount of $500,000 or on $500,000 less $100,000 which is equivalent to $400,000?

1)In some areas there is "high conforming" which overlaps with jumbo. Jumbo is not always more.
2) it is based on loan amount and not the price
3) your terminology is wrong. You want to buy a $500,000 property and get a $400,000 loan. The $400,000 is the principal balance of the loan.

[SmartMoney]

Originally Posted by bbc0218

May I ask as to when a loan is considered as conforming limit loan or jumbo loan? Is it the loan amount before down payment or the amount after considering down payment? Let's say for example that I would like to borrow $500,000 and I would put a 20% downpayment. Would the determination whether the loan is conforming or a jumbo loan be based on the principal amount of $500,000 or on $500,000 less $100,000 which is equivalent to $400,000?

The determination of the category is loan amount, not sales price.