Buying a home can be an exciting time in anyone’s life. At BayCoast Mortgage Company, we want to help you find the best loan product to suit your needs. As a full-service lender, our mortgage professionals work hard to help make the entire process easy and stress-free. If you’re in the market for a home with a higher price tag, a Jumbo Loan may be a great option for your situation.
What Is a Jumbo Loan?
A jumbo loan is a mortgage used to finance a property that is exceeds the maximum amount allowed for a conventional, conforming loan. The maximum amount for a conforming loan can change from year to year and is based on the average U.S. home price. The conforming loan limit is set by the Federal Housing Finance Agency (FHFA) and can be found on their website. Homes that exceed the local conforming loan limit typically require a jumbo loan. That’s where BayCoast Mortgage can help.
Benefits of a Jumbo Loan from BayCoast Mortgage
One of the biggest advantages of a jumbo loan is how they may help qualified buyers own more expensive properties. Since the loans offer larger loan amounts, a buyer may have a better chance of financing the home of their dreams with a jumbo loan.
BayCoast Mortgage offers a variety of jumbo loans with fixed and adjustable interest rates, giving you the flexibility you may need to get the financing that works best for your particular situation.
With a fixed-rate jumbo loan, your interest won’t change throughout the life of the loan, giving buyers greater stability in predicting your monthly payment. With an adjustable-rate jumbo loan (ARM), the interest rate may change over time. Since ARMs typically offer a lower initial interest rate, this type of loan may be an option for buyers who want reduced initial payments or who plan to sell the home within the first few years of the purchase.
While jumbo loans give homebuyers the opportunity to finance properties with higher price tags, buyers should know that this type of loan most often comes with more strict qualifications, such as a higher credit score as well as a larger down payment. For lenders, jumbo loans are considered risky because they are not guaranteed by government-sponsored enterprises such as Fannie Mae and Freddie Mac, meaning the lender is not protected from losses if a borrower defaults.
Choose BayCoast Mortgage for Your Next Jumbo Loan
When you need a jumbo loan, we hope you’ll choose BayCoast Mortgage. We offer flexible mortgage solutions to help you achieve your homeownership goals. If you’d like more information about any of our mortgage products, please contact us or visit one of our local branches today. We look forward to working with you!