With the cost of housing constantly on the rise, traditional conforming loans (those with loan maximums set by Fannie Mae and Freddie Mac each year) may not give you the cash you need to get you into that dream home. A Jumbo mortgage, on the other hand, offers loan amounts above $417,000. Although Jumbo loans are becoming more common nowadays (buyers need larger loans to keep up with the housing price hikes), the question still remains - is a Jumbo mortgage loan right for you?
What you should know about a Jumbo Mortgage Loan. We offer fixed-rate, adjustable-rate and interest-only Jumbo mortgage options. But beware of higher interest rates with Jumbo mortgages - the larger the loan, the greater the risk to the lender, and the higher the interest rate. Read more about Jumbo mortgage loan rates here.
Before diving into a Jumbo mortgage, you need to be honest with yourself about your cost of living. Ask yourself:
Do I have enough savings to make my payments if I can't work?
Can I afford $3,000 or more per month for my mortgage payment?
Will I have enough money left over to pay other bills and expenses?
After I've paid all my expenses, will I have any money left over to play with?
At the end of the month, after you've paid all the utility bills, the Jumbo mortgage, the car payment, insurances, groceries, etc. - will you have any money left over to play with? That's a very important question. Be careful not to spread yourself too thin - there are always bumps in the road, expenses we don't anticipate (like car or house repairs or even injuries). Also, you want to enjoy life! Your home is to live in - not to feel trapped in because you can't afford to anything other than pay the bills.