Choosing a California jumbo loan is often times the single largest financial decision that a borrower will make. As with any loan it is important to compare rates, terms, and shop around for the best offer. Ocean Pacific Capital has over 30 years of experience to help you find the loan best suited to meet your needs.
California jumbo loans are not necessarily as large as people think. There are many misconceptions about California jumbo loans. Many people assume that a California jumbo loan is any loan over $1 million dollars. However that is not true of a California jumbo loan. A California jumbo loan is any residential mortgage with a loan amount exceeding the maximum conforming loan amount determined by Fannie Mae and Freddie Mac, which is currently $417,000.
Rates on California jumbo loans tend to be slightly higher than loans of a lesser value, because lenders generally have a higher risk on these loans. The conforming loan amount fluctuates yearly and varies from state to state. In 1998, for a single family home, any loan amount over $227,150 was considered a California jumbo loan. That amount for a California jumbo loan has increased yearly, and in 2005, any loan amount over $359,000 is considered a California jumbo loan. The loan amount for a California jumbo loan has also increased for two, three, and four family homes in most states. With the rise in property sizes and values, California jumbo loans are more popular and valuable.
To avoid the slightly higher rates of a California jumbo home loan, borrowers sometimes will use credit cards or other unsecured lines of credit to make up the difference. People sometimes may even use their vehicles as equity and take out a separate car loan. These however are all risky options to choose from and the savings achieved by the result of these efforts is negligible. Fortunately there are California jumbo home loans and these are what most families choose when the value of the loan they are seeking is greater than that allowed by conforming loans. California jumbo home loans allow the borrower to take out one loan rather than go through all the hoops discussed earlier. A California jumbo home loan is a convenient and simple type of loan that can help put you in a new home. Many peoples' first reaction is that they do not need a California jumbo home loan. They may only want a small house. However today's reality is that even a small home can be expensive, and most single family home loans over $417,000 are considered a California jumbo loan.
Call us today toll-free at 1-800-595-1474 or fill out our online application.