Jumbo Loans - Tucson, AZ
While the average home price in Tucson is $389,900, many people want to dream bigger: if you’re one of these dreamers, you’ll want to take a good look at jumbo loans.
Non-conforming loans, also known as jumbo loans, allow you to borrow above the conforming loan limits of Fannie Mae and Freddie Mac. They have the benefit of no mortgage insurance if you provide a 20% down payment, and they’re competitive with other conventional loans.
Should You Get a Fixed-Rate or Adjustable-Rate Jumbo Loan?
Just as with a conforming loan, you have two options for your jumbo loan, both of which can be highly advantageous for particular homebuyers.
Fixed-Rate Jumbo Home Loans
With fixed-rate jumbo loans, your interest rate will remain the same throughout the life of your loan. This is a great choice for homebuyers who purchase when rates are low.
If you decide later that you’d like an adjustable-rate jumbo loan, no problem! District Lending will help you refinance for free.
Adjustable-Rate Conventional Loans
These mortgages have adjustable rates, which fluctuate with market conditions. Often the interest rate will be lower than a fixed-rate loan at the beginning of the mortgage.
These are great for investment properties because you can save cash for repairs, renovations, and any other business purchase.
The best rates come with the best deal.get a quote
Everything to Consider When Taking out Jumbo Loans
When considering whether you can afford a jumbo loan, analyze your monthly debts, expenses, income, and savings. Here’s an abbreviated list of what you must consider:
For jumbo loans, a great credit score is a must. While a 680 is considered great for mortgages within the conforming loan limits, homebuyers should expect to need a 720 for moderately-sized jumbo loans and a 740 for those above about $1.5 million.
Current Debt Payments and Savings
Because jumbo loans carry a higher risk for the lender, homebuyers need to have a great debt-to-income ratio to access this kind of financing: sometimes below 36%. List your monthly debt expenses to identify if you have enough income for jumbo loans.
The more you have in savings, the more likely you will be to qualify. Your loan servicer will want to see that you’ll be able to pay the average monthly payments between $5,941 and $6,253 for a Tucson Jumbo loan.
Every company has different requirements for a jumbo loan, and their rates vary. Expect to spend some time looking at all the mortgage options available to you and ascertaining whether their conditions are favorable to you.
Our mortgage calculator lets you get a good look at how much you’ll be paying for jumbo loans based on a variety of factors.
Interest Rates and Closing Costs
Interest rates on a jumbo loan are a little higher than other mortgages, but not by much: usually about 0.25% to 1%.
Jumbo loans also require cash reserves and closing costs like any other loan. Thanks to the higher risk, you will likely need private mortgage insurance, though your lender may waive this depending on the loan amount and down payment.
The District Lending Difference
Whether you’re hunting for jumbo loans or other financing, you can always get a free quote without any credit check to better understand what loan amount you may be eligible for.
District lending makes the jumbo loan process easy, seamless, and stress-free through our online pre-approval process.
Explore the various variables that go into the jumbo loan process with our free calculators.
Serving the community of Tucson, AZ and the surrounding area