9 Year Mortgage on The Return of the Big Mortgage
Low interest rates are driving high-end home buyers to large mortgages at a pace not seen since the housing boom. However some of these deals may have a limited shelf life. Should people really buy into these great deals? Or should we still be cautious, in case there is another market crash? Read on and 9 Year Mortgage will give you all the details.
9 Year Mortgage on Jumbo Loans
9 Year Mortgage defines jumbo loans as those that are bigger than $417,000. Did you know that the average rate on a 30-year jumbo mortgage is 5.15%, which 9 Year Mortgage says is down from 6.41% two years ago. This means that the monthly payment on a 30-year $600,000 home loan is now going to be about $3,280, which is $480 less than the cost of the same loan two years ago, that is a savings of nearly $5,800. 9 Year Mortgage says that not only are jumbo loans cheap relative to historical rates, they are cheap relative to smaller loans, which 9 Year Mortgage notes are backed by Fannie Mae, Freddie Mac and federal agencies. The only difference between the rates on a jumbo mortgage and a smaller mortgage is .43 of a percentage point, this being the narrowest that is has been spread since 2007. This makes borrowing bigger amounts more attractive than it has been in recent years. 9 Year Mortgage believes this gives opportunities for buyers who might have been previously locked out of pricey markets due to higher rates. 9 Year Mortgage thinks that buyers are jumping at these jumbo loans, because they accounted for almost one in every six new mortgages, including new-home purchases and refinances, in the first quarter of 2011. 9 Year Mortgage says at this pace the number of jumbo loans issued in 2011 could be the highest they have been in five years, which is when the housing market was near its peak. 9 Year Mortgage believes that the reason for this is because people are trying to lock in a government-backed jumbo loan now ahead of a planned limit reduction. 9 Year Mortgage says starting in October, the government will start easing its support of jumbo loans as large as $730,000, this began as an emergency measure three years ago. These new limits will vary by locations, but they will drop to $625,00 in top-tier markets, like New York, Los Angeles and Washington, D.C. 9 Year Mortgage believes that right now, some of the cheapest jumbo mortgages can be found at independent mortgage firms, some of which are web-based. Also depending on location, jumbo loans typically require a down payment of 20% to 30%. Which is double or triple the regular 10% down payment for a smaller loan.9 Year Mortgage says that in order for you to be able to get a jumbo loan you will need to be able to document your income, assets and net worth, including two years of tax returns, recent brokerage, and bank statements. 9 Year Mortgage says that you will also need high credit scores, at least 740 to 760 on the FICO-score range.
Concluding With 9 Year Mortgage
9 Year Mortgage thinks its best to look at your personal situation before you go and get a jumbo loan, and your monthly payment should not exceed 28% of your monthly income. However, if you feel like you can take on a jumbo loan you should act quickly. Lenders won’t be able to sell as many jumbo loans to government-backed agencies. 9 Year Mortgage says that many lenders will have to stop originating mortgages over $625,000 by the end of July for home purchases and by mid-August for refinances, because mortgages may take up to two moths to close. If you are unsure on how much you should be spending on a house, read How Much Should I Spend on a Home, it provides a formula will tell you how much house you can afford. Remember that buying a home is a big deal and the last thing you should be doing is getting yourself into way more home than you can afford.
To learn more about us, and to read what our clients are saying, check out our 9 Year Mortgage Reviews page. For more information on becoming debt free, visit the 9 Year Mortgage Accelerate Your Path site.
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