Jumbo Mortgage Dallas Blog

In this post I will outline the best jumbo mortgage programs for specific loan amounts and loan to values. Assume a credit score of at least 700 is needed for all transactions. We will look at 10%, 15% and 20% down options. There are thousands of scenarios but this will give you a good guideline of the best programs out there. Keep in mind rates change daily and this is snapshot in time. There are interest only options as well as adding a prepayment penalty for a lower rate. I do not recommend adding a prepayment penalty, your rate will only be 1/8th lower. The benefit versus the potential cost just is not there for me. This is a cross sample of programs from 3 different banks.

The first Bank we will look at requires a at least a 20% down payment and has excellent rates on 3, 5, 7 year ARMS.

If your loan amount is between 417K and 999,999 these are the current ARM rates with 20% Down.

3/1 ARM 6.125%   5/1 ARM 6.25%  7/1 ARM 6.375%

If your loan amount is 1 Million to 1,499,999, these are the current ARM rates with 30% Down

3/1 ARM 6.375%  5/1 ARM 6.5%  7/1 ARM 6.625%

If your loan amount is 1.5 Million to 2 Million these are the current ARM rates with 40% Down

3/1 ARM 6.125%  5/1 ARM 6.375%  7/1 ARM 6.625%

The second bank has the best program bar none if your situation falls within the parameters.  This bank requires at least a 15% down payment and the loan amount must be from 417K to 900K. There is no mortgage insurance on these mortgages and no hits to the rate for a cashout. They will finance from a score as low as 650, but we will use 720 as our score for the pricing below. For loan amounts between 750K and 900K add .3 to the rate.

For loan amounts between 417K and 750K these are the current ARM rates with 15% down

3/1 ARM 5.75%  5/1 ARM 6.1%  7/1 ARM 6.35%

For loan amounts between 417K and 750K these are the current ARM rates with 30% down

3/1 ARM 5.05%  5/1 ARM 5.45%  7/1 ARM 5.95%  10/1 ARM 6.65%

15 year 6.45%  20 Year 6.45%  30 Year 6.7%

The 3rd bank we will look at has great pricing on jumbo mortgages with 10% down. A credit score of 700 is needed and the loan amount can go up to 1 Million. These mortgages do have mortgage insurance, but you will not find a better rate with only 10% down on a jumbo mortgage.  

3/1 ARM 5.375%  5/1 ARM 5.875%

If you have any pricing or qualification questions, give Josh Kohl a call at 512 342 1069.

My client is mulling another option that recently became available by the bank of a 3/1 ARM. The ARM has a rate of 6.75%. This will save the client more than $1700 per month. The client is mulling this because his children will be in college by then and they will likely downsize. To note, the the difficult aspect of this jumbo mortgage was finding a lender that will go over 1 Million at LTV up to 80%. I have fortunately found two.

Josh K.

Josh K

Jumbo mortgages especially over 1 million continue to see the Loan to Value reduced. Not too long ago LTV’s for these super jumbo loans were anywhere from 80% to 85% now almost every bank out there has a 75% or less LTV. I work with two wholesale jumbo mortgage lenders who will go up to 80%. The first has one lien at 80% and the second lender has 75% first with an outside second. The deal I am currently working on is refinance. The client is on 8.5% first lien of 888K and a 12.5% second lien of 200K. I will be able to put the client on 1 lien of 1.1 million at 7.875%. This refinance will save the client almost 1K per month and give him a two month break in payments. Keep in mind for such a transaction credit scores have to be over 700 and 6 months worth of PITI reserves has to be documented. No matter what your mortgage is, a thousand dollars a month is a thousand dollars a month.

Josh K.