If you are in the market for an extra large house or one that is packed with high-end features such as marble floors or an enclosed pool then you may need a jumbo loan in Fort Lauderdale. A jumbo loan is a mortgage loan that is for an amount above conventional conforming loan limits. A conforming loan is a mortgage loan that conforms to guidelines from Fannie Mae and Freddie Mac, which are two government-sponsored enterprises. These entities publish several guidelines, but the most well-known one is the size of the loan. Generally, this is limited to $417,000 for a single family home in the continental United States including Broward County. In some larger, more expensive metropolitan areas such as Los Angeles, however, the limits can exceed $700,000.
Loans that go above the guidelines are considered jumbo loans. The interest rate charged on jumbo mortgage loans in Fort Lauderdale, FL is generally higher than on a conforming loan, since the lender incurs higher risk with a jumbo loan. Just how big the interest rate difference is between the two types of loans depends on the current market price of risk. While typically the spread fluctuates between 0.25 and 0.5%, at times of high investor anxiety it can exceed 1.5%.
Jumbo Loan Basics
Jumbo loans in Fort Lauderdale also often require more work to get than do conventional conforming loans. For example, you may need to get two appraisals on your dream home rather than just one. And you’ll need to put a 20 percent down payment on your dream home in order to get jumbo loan approved. If the jumbo loan is being used to refinance your existing home, then you’ll need to have 20 percent of the mortgage amount in equity in your home.
It can also be more expensive to refinance a jumbo loan due to higher closing costs. Some lenders will offer an extension and consolidation agreement, so that if you refinance you will not have to pay for mortgage tax again on the same principal balance. In other cases, title insurance companies will offer up to a 50% discount, often required by law for those refinancing within 1 year to 10 years. The largest discount is for refinancing within one year.
And, as with conventional loans, you’ll have several choices of types of jumbo loans in Fort Lauderdale. For example, you can get a 30 year fixed jumbo loan, a 15 year fixed jumbo loan or adjustable rate mortgages (ARMs). In a fixed loan, you pay the same amount every month for the life of the loan. With an ARM, your monthly payments can move up and down as interest rates fluctuate. Most ARMs have a period of five or seven years at the beginning of the loan where the rate remains fixed.
Where to Get Jumbo Home Loans in Fort Lauderdale
Because jumbo loans can be more complicated than conventional conforming loans, you’ll want to make sure that you choose a lender who is experienced in getting jumbo loans for their customers. At Nationwide Home Loans we have years of experience in servicing jumbo home loans in Fort Lauderdale while also maintaining the high quality of service that you demand from a lender.
Nationwide Home Loans has long been recognized for its outstanding customer service and its strong reputation for getting even the most difficult of loans closed. We’ll walk you through the entire loan process step-by-step taking care to answer your questions in straightforward, understandable language rather than confuse you with industry acronyms and hard-to-grasp concepts. Our lending specialists are top professionals dedicated to building strong relationships with you, the consumer, as well as with real estate agents and builders.
Our process for helping customers qualify for jumbo home loans in Fort Lauderdale is very straightforward. We start by discussing your credit qualifications and your loan options. Next, we’ll walk you through the application and provide you with a list of all the documents you’ll need to finalize a loan such as tax returns and pay stubs. You’ll then receive a prequalification notice that you and your real estate agent can use when making an offer to a seller for your dream house.
Once you’ve signed a contract for your new home, we’ll schedule an expert appraisal management company to come out and appraise the value of your new home. Underwriters will then approve your loan, although there may still be a few things needed to clear for the close of your loan, things that our expert loan officers can work with you to finalize quickly and efficiently. As the last step, we have a specialized closing department that works with the title agent in order to create the final closing on your new home. Then all you need to do is add some final signatures and get set to enjoy your new home! You’ll be glad you chose Nationwide Home Loans for your jumbo loan in Fort Lauderdale!
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