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Kelly Marie will be put to sleep because of the way she looks

Jumbo loan home loans are typically very similar to conventional mortgages, only they are larger in size. Some individuals may well argue that the name "jumbo" is sort of funny simply because these mortgage loans can be traditionally a higher-end type borrower yet the name has founds its place throughout the mortgage banking industry. Generally speaking in most local markets, any mortgage higher than the $417,000 conventional limit is considered as a non-conventional or "jumbo" mortgage. Generally there are certain exceptions in "high cost" markets across the country but for this article's purposes we shall stick to the regular $417,000+ realm with regard to finding the best jumbo lenders.

Best Jumbo Lenders - Guidelines to Watch Out For:

Due primarily to the higher loan amount and overall risk of these mortgages, jumbo loans typically come with more stringent lending guidelines than their Conventional counter parts. First, the down payment(or equity, on a refinance) requirements are generally more strict, typically 20%-25% down at a minimum. Next, expect the debt-to-income ratios to be a bit more restrictive than a Conventional loan. Another aspect that is different will be the cash "reserve" requirement. Typically lenders will want to see at least 6-12 months worth of mortgage payments in the bank, in liquid form. This helps ensure that the borrowers can continue making payments if something unexpected were to occur such as a job loss, large home/auto repairs, or any other emergency which may cause money to get tight for a stretch. Even the best jumbo lenders may also require additional documentation, such as three years worth of tax returns vs just two, additional asset statements, and often times additional documentation pertaining to corporate entities owned by the borrowers.

Best Jumbo Lenders - About Interest Rates?

As you may expect, jumbo loans typically carry a bit higher interest rate. This is not only due to some added layers of risk, but also because they are generally "portfolio loans" or mortgages retained by the lending institution after closing and not sold in the secondary market. Because portfolio loans are "shelved" and retained, the loss is much greater if a borrower were ever to go into default. For this added risk, the interest rates are generally anywhere from .25% - 1.00% higher depending on the loan term and other layers risk factors. This sometimes can work to a jumbo borrower's favor, however. Since the portfolio lender has full control over structuring the loan, they may sometimes grant special ultra-low interest rates to very well-qualified borrowers and/or borrowers who also happen to have large asset accounts with their lending institution. That being said, you can sometimes put your current bank among the best jumbo lenders by virtue of simply having large asset accounts there and being on their "VIP list" of sorts.

Remember, sometimes your best place to find the best jumbo lenders is your own local bank. If you have large asset accounts at a local bank, or you can move some money there, it is quite likely that bank may grant you special rate incentives on your mortgage in return.

In conclusion, jumbo loans are just larger mortgages with more strict guidelines and slightly higher interest rates. Though they are often times "portfolio loans" retained by the lending institution, the process for obtaining a jumbo mortgage is generally the same as that of a Conventional loan.

Author Joe Karns with Bridgeview Bank is a seasoned mortgage professional dedicated to bringing his subscribers relevant and useful information on how to compare jumbo mortgage. Want a free jumbo mortgage quote? Check out the following link for more a FREE consultation and expert advice on helping you identify the best jumbo lenders


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A mortgage is the single biggest personal loan that most people will ever take out in their lifetime so it is a decision that needs due consideration and research. The present problems in the real estate market have perhaps even increased the need for vigilance with valuations so much more difficult to calculate.

Mortgage lenders are still plentiful but perhaps more cautious than a few years ago. Previously a lender was fairly happy to advance money if the applicant could demonstrate his or her ability to make the monthly payments. Real estate prices were generally on the rise so valuation was secondary as long as it looked broadly accurate.

The present day is different. Repossessions are not the only reason why there is a surfeit of property on the market. Mortgage lenders now require larger deposits than in the past so that they know there is equity in the home when the mortgage is granted. The need for deposits has slowed demand from first time buyers who may need to save for a time before they can join the real estate ladder.

However at a stage where someone wants to proceed it is a matter of deciding whether to look for a fixed rate mortgage where the monthly installments will be the same for the whole period of the loan or to get a variable mortgage where the interest rate can fluctuate. There are valid reasons for selecting either.

Someone opting for a fixed mortgage knows the whole picture from the outset but may become frustrated as the mortgage runs if the current interest rates are lower than their fixed rate. There may be a temptation to change but of course there are costs involved in a change and they need to be factored in before any decision to change is taken

The other broad type of mortgage has a fixed term but an interest rate which can go up and down as the markets dictate. There may be historical trends that give an idea of the past but they do not guarantee similar things in the future so history should not be relied on to help make the decision.

No one can be certain how long it might be before the house is sold and the mortgage finishes. Some stay in the same home for life, others find that their work means they are moving on a regular basis. This is a consideration when researching the subject of mortgages.

The internet is a wonderful source of information. It is easy to look at the mortgages offered by different lenders, comparing interest rates and terms and conditions in each case. There may be initial offers of a reduced interest rate for a fixed period before the actual rate is charged from time to time. That is certainly an attraction particularly for first time buyers needing a helping hand in the initial stages of a mortgage. Research will find offers such as this and they may be the thing that sways the final decision.