You may have heard or become aware of the term jumbo mortgage loan and questioned what it really means. Well, in this brief article I will take you through the significance of a Jumbo Loan in Florida and why it is necessary for you to understand it.
In standard terms, if a home mortgage loan exceeds a certain quantity, it is considered a jumbo home mortgage loan. Currently (as of 2019), a jumbo home mortgage loan in Florida is a loan that exceeds $484,350.
The best part about a jumbo mortgage loan in Florida is that the approval process is the same as it is for standard loans in the case of most home lenders. Sadly, the interest rate for a jumbo mortgage is typically 1/4% higher than a conventional loan but this does differ and the distinction appears to be less and less every year.
Because brokers are generally compensated based on the amount of the loan and a jumbo home loan is of larger amounts than the standard loan, you need to feel comfortable negotiating the loan rate with your mortgage broker or loan provider. I am amazed at how some individuals will work to get a $100 discount on a tire purchase, however they will fail to ask the mortgage broker for a negotiated settlement on a $1,000,000 jumbo home loan here in Florida. A good home mortgage broker enjoys the process of going over all the charges and for the most part appreciates it. In this manner there are no surprises or issues after escrow closes.
Anytime you start the jumbo loan process whether refinancing or purchasing a house, I advise the following actions:
1) Review present jumbo home loan rates on the internet and get a feel for the existing market. Rate of interest alter regularly so this action just gives you a better idea of the current market. When looking over rates make sure you are reviewing jumbo home loan rates as there is a definite rate distinction.
2) Assess your jumbo loan needs and the exact amount you think you will need.
3) Ask a friend or family for a referral of a home mortgage loan originator or broker.
4) If you cannot get a good referral, you ought to do your homework by researching on the internet and making sure you establish a good list of questions for your prospective home mortgage loan originator or broker.
5) Key Questions to ask consist of: How long have you been originating mortgages, and are you a full-time mortgage loan originator or broker… How do you price your jumbo mortgage loans, and where did you get your license and at what school did you receive your education. Asking these questions will provide you with a good understanding and an initial impression of the home mortgage originator or broker you are dealing with.
6) Determine if you require to pre-qualification for your jumbo loan.
7) Complete the jumbo loan application in detail, thoroughly and precisely.
If you work with a skilled home loan originator or broker, the procedure will be extremely painless as the home mortgage originator or broker will be clear in dealing with the process and also be very proactive with regards to any issues that may arise.
If you follow the rules and actions in this article, you should be well on your way to getting an excellent deal on your jumbo mortgage loan and will have built a long-term trusting relationship with a mortgage loan originator or broker.
Remember that in standard terms, if you are looking to borrow more than $484,350 when buying a property and or home in Florida, this will be considered a jumbo home mortgage loan.