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Purchase A Home With A Jumbo Loan
If you are looking to purchase a home in an area with high housing cost such as California, New York, New Jersey, Hawaii, ect. You should become accustomed to financing a home with a jumbo mortgage.
Within the past few years mortgage interest rates have dipped to levels that make affording more home a reality. Since you are working with a higher loan amount, the effect of having a small difference in interest rate can dramatically affect your monthly mortgage payment compared to a home that is worth $100,000.
Lets look at an example. The difference in a 1% interest rate on a $400,000 from 6% to 7% is $263.00 compared to $65 on a $100,00 loan amount.
What do I need To Do?
Get A Pre-approval Letter Before you do anything you will want to get a pre-approval letter from a reputable mortgage company. By getting pre-approval, you show the buyer as well as the real estate agent that you have the purchasing power and you are serious about buying a home. Most of the time a realtor will only show you homes when you have received pre-qualification. When speaking with your mortgage company, let them know your intentions to obtain approval. |
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