Are you shopping for a new home? If so, then one of the loans you can consider getting is a jumbo loan. It is, of course, just one of the many loans you can get to buy a house. However, why should you get a jumbo loan? The biggest reason to get a jumbo loan is the fact that it offers way more money than a traditional loan would offer. This means that you can get a bigger loan to buy a more expensive home!
3 Top Myths About Jumbo Loans That You Should Know
- If You’re A First-Time Homebuyer, You Are Not Eligible For A Jumbo Loan. While this may be true for some mortgages, you can actually get a jumbo loan as a first-time homebuyer. You can even get a jumbo loan as a second-time or third-time homebuyer. The fact is, lenders are not looking at whether you’re a first-time homebuyer or not. Instead, they’re looking at your credit score, your income, and your debt-to-income ratio. The key here is to have a good credit score and a steady income. As long as you have these things, you can get a jumbo loan.
- A Jumbo Loan Is More Expensive Than A Traditional Loan. One of the biggest myths about jumbo loans is that they’re more expensive. While this might be true back in the late 2000s, the truth is that some jumbo loans are actually cheaper than traditional loans. This is because lenders now consider certain factors that can lower your interest rates, such as your credit score, your debt-to-income ratio, and your loan-to-value. As long as you have a good score and a good debt-to-income ratio, you can actually get a lower interest rate on a jumbo loan.
- Jumbo Loans Typically Come With Higher Interest Rates. Well, this is not necessarily true. While jumbo loans do come with higher interest rates than traditional loans, you can actually get a lower interest rate if you know what you are doing. One way to get a low interest rate on a jumbo loan is through a jumbo refinance, or jumbo cash-out refinance. A jumbo refinances, or cash-out refinance, allows you to get rid of your high-interest rate loan and replace it with a low-interest rate home loan. This can save you thousands of dollars over the life of your loan. Of course, this is, once again, based on your financial status. If you have good credit scores and the like, you are eligible for lower rates. On the other hand, if you have a poor credit score, you may end up with deals that use higher rates.
Your Team at America’s Mortgage Solutions
As you can see, jumbo loans are a good option if you need more money for your home purchase.However, you do need to be careful about certain things, such as ensuring your credit score is good and that you actually have the money to pay off the jumbo loan. Be sure to work with a reputable and reliable lender, and they will work out a deal with and meet your financial needs!
America’s Mortgage Solutions is a home loan expert helping homebuyers find the right loans they need to own their dream homes. If you are looking for a jumbo loan in North Palm Beach, contact us today at (561) 316-6800.
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