Refinancing a jumbo loan is a great way to make payments much more affordable by cutting your interest rate down. Jumbo loans are taken out over a longer period of time than conventional ones which means saving money down the line is usually a concern.Due to the amount of money borrowed with a jumbo loan refinancing requires that certain rules are met. Consider the following questions to help you navigate the maze of refinancing your jumbo loan.
It is possible to refinance a loan simply by doing your own research. Sometimes, a third-party can give you a lot more objectivity when looking at all of your options. Getting the help of a mortgage broker or a real estate agent comes with its own expenses but the help you can get is invaluable.
When you work with a mortgage broker you save a lot of time by getting more information faster about which lender can offer you the best rates. They will also tell you the chances you have of getting another jumbo loan.
Real estate agents can often get a mortgage loan closed fast. They may not be able to offer a list of the best lenders with the best rates but if they deal with luxury properties they certainly know who will do a great job of approving jumbo loans.
A good option for lowering your jumbo rate mortgage is getting a hybrid adjustable rate mortgage without a 30 year fixed commitment. This is a good option if you think you are going to move from your home in the near future. Hybrid adjustable rates start at a fixed term and are low-interest rates that go up after 10 years and become adjustable rates. This does mean that after the fixed rate your mortgage payment will become higher, but it is a good option if you think you will be changing properties or refinancing again in the near future.
Hybrid mortgages come with a lot more risk than fixed rate loans do. Speak with your mortgage broker or real estate agent before deciding on this path. One of the easiest routes to go is to refinance with your current lender. They already know about your property and repayment history.
It is still possible to shop for another lender but refinancing with your existing lender often means they don’t need an additional appraisal of the property which can save you money. Your current lender can also offer you a reduced rate loan which can save you even more money. Be sure to ask your current lender about any jumbo rate offers that they have.
Before you do speak to your current lender, however, it is worthwhile to look at what other lenders are offering. This way you can compare the difference between the rates that are available on jumbo mortgages at this time and be able to talk with your current lender about any rates that are better than that each day offer. When you compare rates with other lenders you see where your lender stands and know where you will be able to save the most money.
Remember that refinancing with the help of a new lender means you will have to pay a new set of closing costs. This might cut into the money that you have saved on the rate. Make sure to carefully research all of the costs of these and then compare rates define what your best deal is. Your current lender might be able to cut some of the closing costs for you.