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I am pricing out a loan that is near at the Jumbo limit. Turns out the rate actually goes up if I stay under the 612K amount between an 1/8th and 1/4 of a percent. Does this sound right? Seem odd to me but whatever. If that is the case. What can I do to get the lower rate and still remain above the 20% LTV.
My only thought was to pay more of the closing costs for the seller.
Current estimate:
Home:760000
Down: 152000
Loan: 608000
Jumbo loans are one of those things that some lenders really like because they are being used to create a loan pool that some investors find more attractive than traditional GNMA funds. The "discounted rate" is probably part of the incentive that the lender is paying to brokers to bring in more such loans and the details of what else they MIGHT be willing to modify, perhaps by lowering the down payment percentage, are also more flexible than traditional loans sold to Fannie / Freddie. Worth asking...
Right now we are seeing jumbo beat conforming - it happens, the income per loan is typically higher, the credit scores better and the qualifications almost always stronger.
Last edited by SmartMoney; 03-30-2017 at 09:04 PM..
Reason: Edited to add:. My viewpoint is that of a portfolio lender that holds jumbo loans.
When we bought a year and a half ago it was cheaper to go jumbo than conforming... we still were able to put 20% down, had planned on 25% to stay under the $417K limit in our area at the time. Interest rate and closing costs were both less for jumbo.
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