Jumbo Loans - Scottsdale, AZ
Beautiful Scottsdale is a millionaire’s dream: in fact, there are nearly 14,000 millionaires in this city alone! Buying a more expensive home means taking a conventional loan outside the conforming loan limit. As this region of Arizona is quite expensive – 13% higher than the national average – jumbo mortgages allow you to get a great home in a high-class area which may not be possible with conventional loans.
There are numerous advantages to jumbo loans compared to conforming loans, the most important of which is that it allows you to borrow more than the loan limits set by the Federal Housing Finance Agency.
A jumbo loan is also excellent for those buying investment properties, as your loan amount could be as high as $5 million, depending on the lender.
Jumbo Loan Options: Fixed-Rate vs. Adjustable Rate Loans
Just as with home loans in the conforming limit, you have two options available to you when it comes to your jumbo home loan.
Fixed-Rate Jumbo Home Loans
With a fixed interest rate jumbo loan, you will enjoy the same rate throughout the life of the loan. This is an excellent option for those seeking mortgages on a personal luxury home.
Adjustable-Rate Conventional Loans
With an adjustable-rate mortgage, your rate will fluctuate with market conditions, though it is lower when you first open the loan. Purchasing a luxury building as an investment can help you jump in and begin building cash flow before rates change.
Calculating Your Jumbo Mortgage Loan Payments: How Much Can You Afford To Borrow?
Several factors determine how much you’ll pay monthly toward your jumbo home loans. Use our mortgage affordability calculator to get a good idea of your mortgage budget. If you want more guidance, our loan officers are happy to walk through your finances to ensure that a jumbo loan is right for you.
Consider the following when weighing the costs of a jumbo loan:
Down Payment
For jumbo loans, you should expect to provide a down payment of 20%, though some lenders will allow you to provide as low as 10%.
Financial Health
You’ll need a low debt-to-income ratio (DTI), typically below 43%, to qualify for a jumbo mortgage; many Scottsdale lenders are looking for a DTI closer to 36% for those wanting more than the conforming loan limit. The lower your DTI, the more options you have for jumbo loans. You should also have cash reserves to cover any unforeseen expenses and ensure you can pay your jumbo mortgage.
Credit Score
Fannie Mae and Freddie Mac do not guarantee jumbo mortgages, so jumbo loans carry a higher risk for lenders. While a 680 score will qualify someone for a conforming loan, a jumbo home loan has stricter requirements of 720 or higher.
Interest Rates and Closing Costs
Your jumbo loan interest rate can be between 0.25% and 1% higher than a conforming loan. Just as with other loans, jumbo loans also have closing costs, which will range in percentage. Sometimes, you can reduce closing costs by accepting higher interest over the long term.
District Lending strives to offer highly competitive jumbo loan rates and will work hard to give you the best rate possible.
The District Lending Difference
Free Quote
We know that folks looking for jumbo loans are doing extensive research on what they can expect, so we provide a free, no-obligation quote without checking your FICO score.
Pre-Approval
We also make the jumbo loan pre-approval process easy with our fully online forms: just fill it out, and we’ll get you pre-approved as soon as possible.
Mortgage Calculator
We want home buyers to be fully informed of their options for jumbo mortgages, which is why we provide free mortgage calculators to help you understand your budget and what you can expect from your monthly home loan payments.
Serving the community of Scottsdale, AZ and the surrounding area
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