“Our Realtor said it’s very difficult to get a jumbo loan these days.”
“We tried to do a cash out jumbo refi on our place but our bank told us that they’re not doing those anymore.”
“We wanted to refinance our jumbo loan but by the time we did the research the rates weren’t any lower than what we have already.”
“Is it possible to refinance a jumbo loan without having to move our savings and investments to the bank who’s making the mortgage?”
“We have a 20% down payment and are looking to buy a house that requires a jumbo loan. We had no idea that would be so difficult. Why are banks now telling us we need more than 20% down?”
As we go into the second half of 2020, it’s unquestionably true that we’ve seen a complete reshaping of the mortgage industry due to financial turmoil wreaked by the COVID-19 pandemic. And one of the products under most pressure has been the jumbo loan — programs that accommodate loan amounts greater than the conforming or FHA limits. Access to this tier of credit is essential to the higher-cost coastal real estate markets as well as to larger cities with luxury markets, like Chicago. So is the home buyer or owner looking to refinance out of luck if he or she needs a competitively-priced jumbo loan? Fortunately, the answer is a resounding “NO!,” though some research may be required to find it.
As of June 1, 2020, here are some of the jumbo mortgage options we will permit:
- 20% down payment purchase jumbo mortgages to $3MM. Max purchase price is $3,750,000 in this case.
- Cash out refinances to 70% loan-to-value (LTV). Cash out amounts can exceed $250K.
- Jumbo purchase and refinance mortgages that do NOT require transfer of assets to us.
- 10% down payments on jumbo mortgage options.
- “Rate and term” refinances to 80% LTV, up to a $3MM loan amount.
While we are not out of the pandemic woods yet, we expect that our jumbo options will continue to strengthen and expand so long as real estate sales remain robust. While much of the country can make do with conforming loan products there are many key markets that rely on efficient and cost-effective jumbo loans. We’re here to address that need if it applies to your scenario.
Go big and/or go home,
Rob Spinosa
Vice President of Mortgage Lending
Guaranteed Rate
NMLS: 22343
Cell/Text: 415-367-5959
rob.spinosa@rate.com
Marin Office: 324 Sir Francis Drake Blvd., San Anselmo, CA 94960
Berkeley Office: 1400 Shattuck Ave., Suite 1, Berkeley, CA 94709
*The views and opinions expressed on this site about work-related matters are my own, have not been reviewed or approved by Guaranteed Rate and do not necessarily represent the views and opinions of Guaranteed Rate. In no way do I commit Guaranteed Rate to any position on any matter or issue without the express prior written consent of Guaranteed Rate’s Human Resources Department.
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