Posted on: 30th Jun, 2009 09:49 am
What do rates on super jumbo mortgage loans depend on?
Hi
Super jumbo loans are hard to find these days. You need to have excellent credit scores and income to obtain a jumbo loan. The rates of super jumbo loans depend on various factors. Some of them are as follows:
1. Loan limit: Since the loan amount for super jumbo loans far exceed the maximum limit of conventional loans, they are considered to be high risk loans. This is why the rates on this type of loans are higher than rates on other types of loans.
2. Credit scores: The borrower needs to have excellent credit scores. Generally, if you have a 750+ credit score, you can expect the lowest interest rate on your loan. If your credit is not so good, you will be charged a higher rate.
3. Down payment: The rate also depends on your down payment. The more you put down on your loan, the lower the interest rate you get.
4. DTI ratio: Your debt to income ratio also affects the interest rate. In order to get a lower interest rate, you ought to bring down your debt to income ratio.
There are other factors as well which influence the interest rate on your super jumbo mortgage loan.
Super jumbo loans are hard to find these days. You need to have excellent credit scores and income to obtain a jumbo loan. The rates of super jumbo loans depend on various factors. Some of them are as follows:
1. Loan limit: Since the loan amount for super jumbo loans far exceed the maximum limit of conventional loans, they are considered to be high risk loans. This is why the rates on this type of loans are higher than rates on other types of loans.
2. Credit scores: The borrower needs to have excellent credit scores. Generally, if you have a 750+ credit score, you can expect the lowest interest rate on your loan. If your credit is not so good, you will be charged a higher rate.
3. Down payment: The rate also depends on your down payment. The more you put down on your loan, the lower the interest rate you get.
4. DTI ratio: Your debt to income ratio also affects the interest rate. In order to get a lower interest rate, you ought to bring down your debt to income ratio.
There are other factors as well which influence the interest rate on your super jumbo mortgage loan.
As stated above, there are a number of factors in the approval of a super jumbo loan. From experience, the best super jumbo rates are through regional Portfolio Lenders who do not necessarily grade you on the credit score, but on your credit profile. This meaning you will not face a rate adjustment for your credit score being below the 700 or 720 mark as long as your credit profile and loan scenario are all make sense. Please keep in mind this is only thorugh local banks and cannot be promised depending on your location. It is just another option depending on your location. Please let us know where you are speaking of within the US, and I'm sure someone within the community will be able to guide you in the right direction. I hope this helps...
is there any specific difference between jumbo and super jumbo loans?