Jumbo Mortgage Broker San Jose
Jacob offers a comprehensive array of mortgage services to its clients. As a licensed Mortgage Broker, he can assist you with jumbo mortgages, FHA loans, or VA loans (both for purchase and refinance). He offers not only QM mortgages, but he also offers NonQM mortgages as well. Let's talk!
Jacob Varghese, NMLS 327086
DRE 01790347
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What is a Jumbo Mortgage?
Jumbo loans (also known as non-conforming loans) are loans that exceed conventional loan limits. Jumbo mortgages are not backed by Freddie Mac or Fannie Mae, the largest mortgage buyers.
Due to the fact that these loans exceed the normal or regular loan limits, they often carry more risk than conventional loans. Even though interest rates are lower than they have been in years, jumbo loans typically have a higher interest rate than conventional loans.
*Where are Jumbo Loans Found?
Jumbo loans are more commonly found with large houses or in housing markets where the average home price is much higher than in other states.
Despite the fact that jumbo loan housing is not typically hard to sell, the large mortgages attached make these loans a major risk because it is typically difficult to sell such a home to the average home buyer. Especially if you don't live in a prime area. In tight credit times such as these, it is usually necessary to have great credit to qualify for jumbo loans due to their riskiness.
*Minimum FICO score
According to the rule of thumb, jumbo loans require a credit score of at least 680. Creditors have historically required credit scores of at least 700, but these days many lending institutions are demanding even higher scores.
*Downpayment
Historically, conventional mortgage down payments have been flexible, but jumbo mortgages have always required a 20-25 percent down payment in most real estate markets where jumbo loans are common. These days, however, Jumbo loans can be obtained with just a 10% down payment.
10% down Jumbo
Jacob can help if you're looking for a Jumbo with 10% down. The rates will certainly be higher.
Mortgage and Points
Is it a smart idea to pay points on your mortgage?
- How do you define a point?
A mortgage point is equal to 1% of the total cost of the loan.
So, if you are getting a mortgage for $150,000, then it will cost you $1,500 per point.
- The benefits of points
When you pay points at closing, you can reduce your interest and save money.
It is common to stay in your house for a number of years.
A short stay won't help if you are not planning on staying long.
- This is an example we can look at.
If you buy a house for $100,000 at 7.5% interest, then you would be paying around $700 per month.
If you spend $1,000 to buy one point, this will reduce your interest to $7.375%, and payment to $ 691.
The difference in your payments is now around $9.
Divide ($1,000 / $9).
The answer of 111, which is the number of months you need to live there in order to break even.
If you plan on staying for a shorter time period, then you may want to reduce your costs in other ways.
You can do this by paying a larger down payment.
- Multiple Qutes
Also, when you go to get your mortgage, get at least two quotes.
All you need to do is to compare them carefully.
If you choose the best offer, you will be able to save thousands of dollars over the course of the mortgage.
- Please call Jacob Varghese at 408-469-5086 for a quote before you sign the dotted line.
Apply for a Mortgage
Almost all mortgage lenders in the U.S. use the 1003 mortgage application, also known as the Uniform Residential Loan Application.
- Be it purchase or Refinance we will need:
- 2 Paystubs
- 2 Bank Statements
- Email or call for more details.
408-469-5086
Why Local San Jose Mortgage Broker?
* Benefits of using a local mortgage broker?
Mortgage brokers are regulated, qualified professionals who match lenders with borrowers.
Many will have a contact list of hundreds of potential lenders with whom they consult on a freelance basis. They are responsible for reviewing a borrower's credit status and finding the most appropriate lender to service their needs
By managing the borrower's application (sending it to one or more lenders), the broker will ensure that the transaction is completed. An effective broker is usually able to deal with most types of clients, no matter what their credit history may be.
* How is the broker paid?
The broker earns a fee from either the lender or the borrower, but not from both.
In the majority of cases, it is a smart idea to shop around for the most favorable deal. It is possible that one broker can offer you a more competitive rate or a more flexible repayment schedule than another. It is wise not to accept the first offer you come across, but instead to search the internet for licensed brokers in your local area.
* Why Local San Jose Broker
Your local broker, whilst convenient for you and understanding your local market, will be able to access lenders across the country. Banks usually limit themselves to their own products. Jacob has previously worked for Wells Fargo in Oakland and Bank of America in Sunnyvale.
In cases of miscommunication, the loan process can be slowed or even stopped. A local broker has extensive knowledge of the local real estate market and can anticipate and avoid such problems. The lender may be questioned by local lenders. The broker earns his commission by finding lenders for people with poor credit. A broker must be familiar with the underwriting guidelines of the product he recommends. In this way, the broker is able to submit the borrower's file to the lender whose guidelines are compatible with the borrower's profile.
Properties with unique or commercial characteristics may prove difficult to finance through normal credit channels. Using a competent broker, non-standard real estate and non-standard buyers can be sourced with specialist lenders. In addition, they can give you an accurate assessment of your chances of success.
Referrals from friends and neighbors are ideal, but not always possible. Make use of the experience of Jacob to assist you. You can check out his reviews by clicking here.
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