I wouldn’t exactly say the Jumbo mortgage market is hopping right now. If you currently have a jumbo loan and want to refinance and get cash out – it is going to be somewhat close to impossible to get done.
Especially if you live in a “declining market”.
And keep in mind that it is the lenders definition of “declining market” so if you call me up and tell me there are bidding wars going on in Queen Creek right now – I will agree with you but sadly let you know that the Lender hasn’t found that out yet.
So, basically – Jumbo mortgage refinance and trying to get cash out = impossible very difficult.
If you just want to refinance your jumbo loan, it will be easier than if you wanted to refinance and get cash out – but still difficult. First, you will have the “appraisal issue” (and you know how talking about HVCC makes me feel) and then when your appraisal states that your home has lost value, you are probably going to run into mortgage insurance “challenges”.
So – Jumbo mortgage refinance without trying to get cash out = difficult to very difficult.
And now for the good news.
I had a Account Executive in my office this week and he was from one of the large national banks handing out product sheets for their jumbo products.
I haven’t seen an AE in my office talking about Jumbo Products in over a year.
And here are the basics if you want a jumbo loan without sounding too much like a mortgage-guy-numbers-jockey:
|
Mid Credit Score |
LTV Up To |
1/1 ARM |
30 Yr Fixed |
|
720+ |
75% |
3% |
5.80% |
|
700-719 |
75% |
3.25% |
5.90% |
|
680-699 |
75% |
3.5% |
5.95% |
|
650-679 |
75% |
4% |
6.10% |
NOTE: THIS IS NOT A RATE QUOTE, JUST A BALLPARK ESTIMATE
But now you have a general idea of what the Jumbo mortgage market looks like in Arizona right now. They are still loaning out money to people with good credit, good jobs and want get a great deal on a house (and take advantage of the 8000 tax credit, and, and, and…)
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[...] Yet, with extremely tight lending standards for jumbo loans ($417,000 and higher), we may hit a ceiling. I hear lenders, buyer, and real estate agents all indicating this higher end of the market will be impacted until there are some changes made, but it does sound like there may be some signs of hope. [...]