Anyone trying to find a great mortgage rate is putting themselves through a stressful situation. However, if you’re focused even more, like specifically on the best 30-year jumbo mortgage rate, then your stress level is going to be even higher. If you’re currently in the stage of life where you’re trying to finance the home of your dreams, then start with the basic ideas and advice in the following paragraphs so you can simplify the process of finding a jumbo mortgage rate you can live with for years to come.
The first suggestion you should use might not apply if you already picked out a property you want to buy and then move into, but you might still want to consider it. Look at both jumbo mortgage rates and the overall property market. Both of these typically have fluctuations from one year to the next, and sometimes even seasonally. That essentially means that if there’s a property you can’t afford right now, you might be able to do it a year from now. Do some serious research before making any choices, so that you can know your final call is a good one for your future.
Present yourself well to possible lenders, as this can actually impact the jumbo rates they offer you. Walking in with confidence, as well knowing both your monthly repayment limits and the amount you hope to borrow, can help you avoid being offered something sub-standard. Your preparation and confidence are unlikely to score you lower rates, but the overall terms and conditions are far more likely to be favorable to you in other areas. On the other hand, if you approach a lender when you’re not sure of what you specifically hope to achieve, then you’re probably going to wind up with a mortgage your budget and income can’t handle as well.
Given that jumbo mortgages entail larger amounts of dollars borrowed, the requirements for obtaining one of them are different than other mortgages. For instance, the majority of lenders you deal with are going to require not one but two appraisals. When you establish your eligibility, you’ll have the power to look for the greatest rates available. The only real eligibility difference are going to be looking at your credit score and what kind of property you’re looking to buy. A jumbo mortgage is limited to financing your primary residence; you can’t use it for a rental property or a vacation home. In terms of your credit score, requirements vary by lender, but you can expect to need a substantially higher credit score than if you were looking for a conventional mortgage.
In more cases than not, your credit score needs to be 700 or higher if you want a jumbo mortgage to happen at all. Of course, the higher the your score is over this, the better the rates available to you are going to be. The first thing you should do is check your credit report to see if all information reported there is accurate; any mistake can reduce your credit score, which makes your offered jumbo mortgage rates worse. Secondly, consult your lender about improving your credit score prior to making your jumbo mortgage application.
You are probably thinking of a jumbo mortgage as a way of affording a home, but you do have to ironically figure out if you can afford the very thing that makes your home affordable. While a jumbo mortgage can bring enough money to the table to buy a home, your income needs to bring enough money each month to afford the mortgage payments. As usual, requirements vary per lender, but there is general industry standard of expecting a down payment as much as a third of the total mortgage amount. You have to pay that upfront. Given how much you might borrow, a down payment of that percentage might prove to be an ungodly sum of money, and many folks just can’t do it. On top of the down payment, you need to make sure your monthly budget can handle the repayments, which is where the high interest rates that come with jumbo mortgages really kick in and cost you.