Jumbo Mortgage Dallas Blog

As in any business certain companies i.e. banks cater to certain products. In this case only a handful of banks who lend in Texas offer what I consider great jumbo mortgage products. Right now loan to value and of course high credit scores are everything. The best products right now for purchases are with 25% to 30% down for non interest only products. I am currently working on a purchase for a couple in Dallas where the sales price is 2M, the bank requires them for a 5/1 interest only product to make a 35% down payment and their rate is 4.25%. If they chose a non interest only product they would have made a 30% down payment. In my opinion this is a hell of deal. This is without any points on the front. Of course ARMS are lower than 30 year fixed, but on a 30 year fixed with 30% down you are looking at 5.75% under the same scenario. Of course these are the optimal pricing situations in our current environment. That being said there are banks who offer a 15% down payment without mortgage insurance with competitive rates. The key to working with a great loan officer is shopping around. Your goal as a consumer should be to locate an unselfish lender i.e. me, who works for a reputable company with relationships with the top mortgage lenders. We make money one of two ways on the front, what you see on the GFE and HUD and on the bank, what the actual banks pays us in yield spread premium. This means if I charged the client 4.375% instead of 4.25% I would have made an additional .5 point on the back. They received a GFE with no points, no broker fee/application fee and a rate of 4.25% on a 1.3M interest only 5 year jumbo ARM. If I were to charge a rate of 4.125% I would have made absolutely 0 on the back. Obviously this is not an option if your not making anything on the front. The next rate of 4.25% paid .5% in this case $6500. This is a win, win situation the clients gets the best possible deal while I make a pretty good commission.