High Balance Loans are mortgages originated using higher maximum loan limits that are permitted in designated high-cost areas throughout the country, based on the region’s median home values. These higher loan limits are intended to provide lenders with much needed liquidity in the highest cost areas of the country, while also lowering mortgage financing costs for borrowers located in these areas. This application process is also streamlined. It offers extended loan-to-value ratios and increased lending limits.

Loan Programs Available:

Fixed Rate Product: 30 Year / 25 Year / 20 Year / 15 Year / 10 Year. Fixed-Rate Mortgage (FRM) is a fully amortizing mortgage loan where the interest rate on the note remains the same through the term of the loan, as opposed to loans where the interest rate may adjust or “float”. As a result, payment amounts and the duration of the loan are fixed and the person who is responsible for paying back the loan benefits from a consistent, single payment and the ability to plan a budget based on this fixed cost.

ARM (Adjustable Rate Mortgage): 10/1, 7/1, 5/1, and 3/1 are most prevalent. A variable-rate mortgage, adjustable-rate mortgage (ARM), or tracker mortgage is a mortgage loan with the interest rate on the note periodically adjusted based on an index which reflects the cost to the lender of borrowing on the credit markets.[1] The loan may be offered at the lender’s standard variable rate/base rate.

Mortgage Insurance will be required. Two most popular options include:

  • Borrower Paid Mortgage Insurance: BPMI or “Traditional Mortgage Insurance” is a default insurance on mortgage loans provided by private insurance companies and paid for by borrowers. BPMI allows borrowers to obtain a mortgage without having to provide 20% down payment, by covering the lender for the added risk of a high loan-to-value (LTV) mortgage.
  • Lender Paid Mortgage Insurance: LPMI is similar to BPMI except that it is paid for by the lender. The cost of the premium is built into the interest rate charged on the loan.