Delawari Financial has built its business on providing stellar service to its clients. We offer expertise in offering loans of up to $15 million and closing them rapidly. A distinguishing factor between jumbo and conforming loans is that the client will typically have to put down a larger down payment and prove that they can make the monthly payment.
A mortgage lender should help you to understand the details of your loan options and assist you in designing a loan program that fits your needs.
Jumbo Loans are loans that exceed the conforming jumbo limits. While many underwriting guidelines are based on those set forth by Fannie Mae and Freddie Mac, these loans are not governed by these entities. The loan limits for jumbo lending are not set by any governing body and typically range from $625,501 to around $1,500,000 or $2,000,000. Streamline processes have been established for these loans. However, additional requirements are often applied for underwriting and approval. For example, the lender may ask for an additional appraisal and/or impose slightly lower loan to value ratio restriction. While Jumbo mortgages are also available with long term fixed interest rates, adjustable rate products for this option are more common.
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. The loan may be offered at the lender’s standard variable rate/base rate.
Mortgage Insurance (MI) will not be required. Mortgage insurance (also known as mortgage guarantee) is an insurance policy which compensates lenders or investors for losses due to the default of a mortgage loan. Mortgage insurance can be either public or private depending upon the insurer.