Jumbo Mortgage Austin Blog

Here is why you should at very least get a quote from me on a jumbo mortgage. Let’s face it folks who generally place themselves in a position to afford and qualify for a jumbo mortgage are typical pretty smart people. The exception to the rules are perhaps some of those in sports and entertainment. Point being, they know what is going on in the market. What they don’t know is exactly what lender has what rate, or which bank is trying to buy the market that particular day or week with low rates. Jumbo mortgages are much different than a typical mortgage. Out of the 40 banks I have access to, only 6 offer incredible Jumbo mortgage programs. That’s it only 6. Most of the 6 have portfolio Jumbo products, which they hold on to and do not sell to Fannie or Freddie. Obviously good to very good credit scores are needed now more than ever in any kind of mortgage with the exception of FHA. Jumbo mortgages range from 417K to 3 million. The maximum LTV will be 90%. With a 10% down payment your rate is not going to be so hot. Broker secret. US Bank with a 15% down payment has some of the best programs in our nation. For example, the have no hit to the rate for waiving escrows (.25), no hit to the rate for interest only (.25) and they do not have mortgage insurance. Today rates, here is what your looking at if your loan amount is 750K or less.

85% LTV

3/1 ARM interest only or not 5.9%

5/1 ARM interest only or not 6.7%

15 year Fixed 6.85%

20 year Fixed 6.9%

30 year Fixed 7.35%

Keep in mind no mortgage insurance which save hundreds of dollars a month by itself. I’m telling you, I price these out all day long. Some banks charge anywhere from 1 to 7 points to just get to a rate and this is on top of whatever the broker charges. Yes 7 points, send me an email and will prove it. As always, an eighth of a point on a Jumbo loan will matter. It is worth your time to shop your mortgage, it doesn’t take long get a quote from me and another loan officer and make a decision. I can promise you one thing with low overhead I don’t have to charge a full point or make points on the back. Making points on the back is familiar phrase to any mortgage banker, mortgage broker or loan officer in the business. This is where the rate is inflated from par in order to make points. Example on the 30 Year fixed above I could add .8 to the rate to make two points. This is like the one magician who came out with the book of magic tricks. Well not that bad, but as a consumer you have to weigh your closing costs vs your rate and make a decision. If you need any answers to any of your questions, please contact me at josh@jkohlmortgages.com