UTAH MORTGAGE PRODUCT

Jumbo Loan Purchase

Shopping for an expensive home or searching in a hot real estate market? An affordable jumbo might be the answer.

Overview: Jumbo Home Loans

Aggressively Affordable Large Loans

If you’re shopping for an expensive home or searching in a hot real estate market, you may find that the amount you need to borrow exceeds the loan limits for traditional loans.

Your best option could be a jumbo loan, which allows you to borrow a larger sum of money for a property than a conforming loan. A conforming loan is a mortgage that “conforms” to Fannie Mae and Freddie Mac requirements regarding credit, debt and loan size.

The main benefits of a jumbo loan are:

Our Jumbo 90% LTV with no M.I. gives you the option of making a lower down payment or the ability to increase your buying power.
Among the most competitive 30-year fixed rates in the industry.
Loan amounts all the up to $3 million while still being eligible for primary, secondary and investment properties.
Young family happy in house

ARM VS. fixed: Which should I choose?

A fixed-rate mortgage has the same interest rate through entirety of the loan. Your monthly payment of P&I (principal and interest) won’t change. A fixed-rate mortgage is one of the most popular types of financing because it offers stability and predictability for most peoples budget.

An adjustable-rate mortgage, commonly referred to as an 'ARM', is a home loan with an interest rate that can change periodically. This means that the monthly payments can go up or down. In general, the initial interest rate is lower than that of a fixed-rate mortgage. After the fixed-rate period ends, the interest rate on an ARM loan moves based on the index it’s tied to.

When deciding if a fixed or ARM rate is right for you, there are some questions that you need to ask yourself:
1. How long do I plan on staying in the home?
If you’re only going to be living in the house for a few years, it would make sense to take the lower-rate ARM. Your payment and rate will be lower, and you can build savings for a bigger home later on. Also, you’ll never be exposed to huge rate adjustments of an ARM because you’ll be moving before the adjustable rate period begins.
2. How frequently does the ARM adjust, and when is the adjustment made?
After the initial, fixed period, most ARMs will adjust every year on the anniversary of the loan. The new rate is actually determined by the index value around 45 days before the anniversary. But some adjust as frequently as every month. If that’s too much volatility for you, it might be better to go with a fixed-rate mortgage.
3. What’s the interest rate environment like?
When rates are relatively high, ARMs can make sense because their generally lower initial rates will allow you to still reap the benefits of home ownership. When rates are lower, you have a decent chance of getting lower payments even if you don’t refinance. When rates are relatively low, however, fixed-rate mortgages make more sense.
4. Can you still afford your monthly payment if interest rates rise?
On a $150,000 sing year ARM mortgage with 2/6 caps, your 5.75 percent ARM could rise to 11.75 percent, with the monthly payment rising up as well. Generally, when fixed mortgage rates are low, fixed mortgages will tend to be a better deal than an ARM, even if you plan to stay in your home for only a few years.

How do I qualify for a Jumbo Home Loan?

Jumbo mortgages and conforming home loans like conventional loans have many similarities, but there are some key differences to be aware of, including the amount of down payment, cash reserves and credit score you’ll need to qualify. Underwriting criteria for most jumbo loans are stricter because the loans are larger and riskier for wholesale lenders. Most lenders will require a 720+ FICO but at Utah Mortgage we have options available down to a credit score of 700+. 

Credit Score. The minimum credit score requirement is 700+ depending on the the wholesaler that is used. Some will require 720+.

Income must be verified by reviewing your recent pay stubs, W2s and tax returns. Debt-to-income ratio cannot exceed 43%.

To prove your financial well being, we’ll need extensive documentation. Bank statements and investments will need to be verified to ensure the you has sufficient assets to close. These funds must be able to cover a down payment with any other closing costs.

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