It’s no secret mortgage interest rates are currently at their lowest levels ever this year. In fact, CNBC reported that refinance applications have spiked 79% just this week alone. This is the highest level in over 10 years. Homeowners that still have Jumbo loans at higher interest rates should certainly look into the new refinance opportunities available now.
The long-term impact of Coronavirus on the economy and mortgage rates is still unknown. But even a mortgage rate savings of just 1% can have a big impact, especially on high-balance loans over $500,000. Whether the savings vs. cost makes sense will depend on many variables. However, this can often be determined with a quick call to run through the numbers.
Jumbo rate reduction requirements are often less when compared to cash-out refi transactions. With a simple rate reduction, options are often available up to 95% loan to value. However, cash out refinance transactions are often limited to 90% loan to value. The exact limitations will depend on many parameters like final loan amount, property state, credit and borrower profile. Please learn more about the requirements on the Jumbo Refinance page.
Borrowers should note the following requirements, this applies strictly to refinance transactions only.
- 95% loan to value: limited to $1.75 mil loan amounts
- 90% loan to value: limited to $2.5 loan amounts
- The requirements above apply to primary homes only. Vacations homes are also eligible, but the loan to value limits could be less.
- Borrowers will need to fully document income and assets, just like a purchase transaction.
Please fill out the Quick Contact Form or call us to learn more today.