It is easy to be intimidated when confronted with the prospect of needing a California jumbo home loan. Fortunately, the monthly payments on these loans can still be small and despite the intimidating name, many people are able to afford these loans. California jumbo mortgage loans are powerful financial products. Many people dream of owning or purchasing a house their entire lives and only a handful are able to do so with cash. The majority of the population has no choice but to finance when purchasing a home. Fannie Mae and Freddie Mac place strict limits on the amounts that can be borrowed with a conforming loan. Fortunately, many banks offer California jumbo mortgage loans that provide higher limits than those offered by Fannie Mac and Freddie Mac. California jumbo mortgage loans have no limits.
If you are purchasing a four family home in Alaska the most you can borrow with a conforming loan is $1,037,400. The reality is that the majority of people do not purchase four family homes and of those that do an even smaller portion live in the state of Alaska . For a more typical single family, in the majority of states, the most they are able to borrow is $359,000. Fortunately, California jumbo mortgage loans exist to help an ever increasing subset of home buyers. A California jumbo mortgage loan can be the financial tool needed to pursue the dream of owning a home. However, deciding upon a California jumbo mortgage loan is only the first step on the path to home ownership.
There are many types of California jumbo mortgage loans with vastly different terms. Borrowers can choose from fixed rate mortgages and adjustable rate mortgages. The term of the loan is also an important consideration when looking for a California jumbo mortgage loan. On top of all this there are hidden items that one needs to be careful of. For instance some less reputable banks may charge exorbitant fees to fill out a California jumbo mortgage loan application. Other times financial institutions pack in hidden fees such as loan maintenance costs. All of these are items that should be factored in when searching for a California jumbo mortgage loan. The good news is that are handful of reputable and honest California jumbo mortgage loan lenders out there. A little research and a small amount of comparison shopping can go a long way to putting you in your dream home at a price that you can afford.
A California jumbo mortgage rate, just as any other loan products, is influenced by the federal funds rate. The type of loan selected combined with the length of the loan will have the greatest impact on the California jumbo mortgage rate. Today borrowers have many options to choose from. People can pick from either a fixed rate mortgage or an ARM (Adjustable Rate Mortgage) with typical terms between 10 and 40 years. The remainder of this article will delve into more detail on these various options and how the choices impact the associated California jumbo mortgage rate.When shopping for a California jumbo mortgage rate choosing a fixed rate mortgage is oftentimes the most expensive of the two loan types available. The reason for this is that you are not only asking the bank to be your lender, but also your insurance agent. With a fixed California jumbo mortgage rate you are protected from any increases and agree to pay a fixed interest amount for the term of the loan. Consequently, a premium is charged for the loan and the California jumbo mortgage rate is higher.
Despite the higher costs there are major advantages to a fixed rate mortgage. The first of which is there is never a worry that monthly payments will increase. Additionally, if interest rates rise at faster pace than they have historically, you could profit. ARMs oftentimes provide a lower California jumbo mortgage rate. The interest charged for an ARMs fluctuates with the federal funds interest rate. Payments remain the same for a fixed period of time and then adjust at intervals for the remaining term of the loan. These intervals are usually set in 1 to 12 month increments. Despite the lower California jumbo mortgage rate received by choosing this type of loan there is one major risk involved - interest rate fluctuations. If California jumbo mortgage rates increase more than they have historically then this type of loan could end up costing more. California jumbo mortgage rates are typically less over the term of a loan if an ARM is selected. Whereas fixed rate mortgages are more costly, but provide the comforting of knowing that your California jumbo mortgage rate will never increase. Fortunately we can help you with this decision.
A Super Jumbo Mortgage Loan is a loan amount exceeding $650,000 and typically goes up to as high as $10,000,000. These type of loans allow for the high-end purchase of expensive homes, additional vacation homes, investment properties and upscale luxury homes. They are quite attractive for primary occupants or investors who want to leverage their assets.
If you are considering a Super Jumbo Mortgage or a Jumbo Mortgage, then let one of our licensed mortgage professionals help walk you step by step through the loan process. High end financing requires years of experience which is crucial to finding the best mortgage options to suit your needs. We pride ourselves on providing personalized customer care which is why whenever possible, we will come and meet with you in person at your home, office, or any place of convenience, for a free consultation. Call us today toll-free at 1-800-595-1474 or fill out our online application.