New Jersey Jumbo Mortgage

Written by on January 10, 2012 in New Jersey Jumbo Mortgage - No comments
New Jersey Jumbo Mortgage Financing: Understanding Jumbo Loans

While home prices in New Jersey have been in a steady decline and the median home value is now hovering around $260,000, there are still many homes that fall into the Jumbo Mortgage category.  Jumbo mortgages are typically loan amounts above the ‘conforming’ limits of $417,000.

If you are looking to purchase a home and the loan amount on your mortgage is above $417,000 then it is likely you will need to obtain Jumbo Mortgage financing.  Over the past few years Jumbo mortgage loans were difficult to obtain, but in the past 6-12 months we have seen an increase in lenders who are now providing Jumbo loans.

How is my Interest Rate effected with a Jumbo Mortgage?

Typically, when compared to conforming mortgage loans, jumbo mortgage interest rates are slightly higher.  For instance, if a $350,000 conforming loan has an interest rate of 4.25% the corresponding jumbo loan rate (Loans over $417,000) could be approximately .25% – 1% higher, or 4.50% to 5.25%.  Treasury yields and other factors will determine just how much higher a rate you will receive at any given time.

What types of Loan Terms do Jumbo Mortgages have?

Jumbo loans come in various terms: 30, 20, and 15 year fixed rate loans are the most common.  You can also get adjustable rate jumbo loans that also come in various terms:  10/1 arm, 7/1 arm, and 5/1 arm.  Typically the rate on adjustable rate jumbo mortgages will be lower than their fixed rate counterparts.  However, gauging the actual difference in rate is a bit more complicated and depends on a large number of economic factors.

If you are interested in purchasing a home or refinancing an existing jumbo mortgage it is best to speak with a qualified and licensed Loan Officer.  Our partners can help you find the best loan for you.  Just complete the form on your right to get started.

 


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