Residents in Scottsdale have some great Jumbo mortgage options now available up to 95% LTV. The one major difference between Jumbo loans and standard conventional mortgages is that Jumbo loans are provided only for high-cost properties over the conforming loan limit.
In Maricopa County, Scottsdale and Phoenix a “Jumbo mortgages” is characterized as any loan amount for a purchase or refinance that exceeds $806,500 for a one-unit property.
Since the median home price in Scottsdale is currently around $865,000, many borrowers will require Jumbo financing. This is even more the case in ultra exclusive neighborhoods like DC Ranch, or Desert Highlands where homes prices commonly start at $1m+
In some more expensive high cost states such as New York, California, jumbo loans are characterized as any amount that exceeds $1,209,750 – the limit that has been assigned by Fannie Mae and Freddie Mac. So when buying a home, you must know these four things about jumbo loans.
- When applying for a Jumbo loan in Scottsdale, it is important to search for reliable sources of information and an experienced lender who can help you get the best deal. There is no doubt about the fact that the interest rate paid on 90 percent Jumbo mortgage or 95 percent Jumbo loans is going to be slighter higher when compared to conventional loans. However, securing the best rate on the mortgage can help you to save money. Additionally, a select few lenders are offering Jumbo loans up to 95% financing ($2 mil) with no monthly mortgage insurance (PMI)
- Once you have decided on your down payment (5%,10%, 20%) your next step is to choose the kind of interest rate you want. You have two options, either you can go with a fixed rate or you can choose adjustable rates. Your selection of the rates you want on the mortgage depends on how long you are planning to stay in your home. The fixed rate will work best for you if you plan to keep the house for 7+ years. If you are planning to sell or refinance within 5–7 years, it may be better to go with an adjusting rate. Jumbo ARM interest rates will always be lower when compared to fix rates. Borrowers will also have the option of interest rate buy downs if desired.
- After selecting the loan term, the next step would be calculating the cost of other factors. These factors include the cost of loans and other fees affiliated with the mortgage. Also, be sure to know the APR, which helps you clarify the different cost between loan products. Many lenders can offer reduced closing costs options in exchange for slightly higher rates.
- Jumbo loans in Arizona might be the only feasible option available for borrowers living in high-cost areas. It is important that you choose a reliable mortgage lender who can educate you on what will be the right loan option for you. Someone who understands the complex financials of high net worth borrowers.
If you have questions, please call us 7 days a week or just submit the Quick Contact Form on this screen. Please see the helpful video above for the latest Jumbo credit score and LTV requirements available in Arizona. We are proud to serve home buyers across the U.S. including AZ: Phoenix, Tucson, Mesa, Chandler, Glendale, Scottsdale, Gilbert, Tempe, Peoria, Surprise, Yuma, Flagstaff
