UTAH JUMBO MORTGAGES / UTAH JUMBO LOANS
There are so many types of jumbo mortgage programs available it’s hard to decide what is the right loan, and why. There are fixed rates, adjustable rates, HELOC, reverse mortgages, and jumbo loans. So, what is a Utah jumbo mortgage?
HIGHLIGHTS AND LOAN TO VALUES
90% LOAN TO VALUE UP TO $750,000 LOAN AMOUNTS
85% LOAN TO VALUE UP TO $750,000 1ST LOAN AMOUNTS WITH A COMBO 2ND UP TO 350,000
80% LOAN TO VALUE UP TO $1,000,000 1ST LOAN AMOUNTS WITH A COMBO 2ND UP TO 350,000
70% LOAN TO VALUE UP TO $1,500,000 LOAN AMOUNTS
65% LOAN TO VALUE UP TO $2,000,000 LOAN AMOUNTS
INVESTMENT PROPERTIES / 2ND HOMES / LOANS PROGRAMS ALSO AVAILABLE
A Utah Jumbo Mortgage
A Utah jumbo mortgage is classified as jumbo simply because it goes over and above the conforming loan limits in Utah. Jumbo mortgage programs are also referred to as non-conforming mortgages, simply because the loan amount is rather large and it has a higher interest rate. These jumbo mortgage loan amounts are typically anywhere from $417,100 up to 2,500,000, and are generally available from a lender that specializes in them such as www.jumbomortgageutah.com.
Conventional lenders do loans that are not considered high risk, so they won’t do a loan above $417,000 or 600,300 in 3 counties in Utah salt lake, Summit & Tooele County; the property is in a “high-cost” zip code. These loans get their label as conforming loans because they also mirror to the underwriting guidelines that Fannie Mae and Freddie Mac have in place. This is also where the term “mortgage backed securities” comes from, because these loans are securitized on Wall Street. Overseeingthe Jumbo Loan
Once jumbo mortgage limits are set, conventional loan limits can also be re-evaluated to ensure that they are balanced. These limits are set so that the proper interest rates are being charged, and the proper guidelines are being followed according to the type of loan the borrower is getting. Loan limits were evaluated when property values were rapidly moving up word, but now these loan limits are not as prevalent due to the economy. In fact, many of the properties that were purchased using a jumbo mortgage program, had dropped in value so significantly that many were able to buy these homes either as short sales with a conventional loan or with the help of Fannie Mae.
Jumbo loans are available with fixed and adjustable rates, and some lenders also offer low down payments such 10% down for a jumbo purchase or a refinance as well as interest only options in Utah. Jumbo mortgage programs that have fixed rates offer terms anywhere from 15 to 30 years, but the 30 year is usually the most common choice to keep the payments at fixed low rate. Adjustable jumbo mortgages are designed with those in mind who want the initial lower payment, and know that they may be making another change within a few years time. Adjustable mortgages can be set up for a 3, 5, or 7 year terms, and if you aren’t sure which one is right for you, call Daniel Paris 801-604-4949 to discuss all of your options.
Jumbo mortgages are not for everyone, Daniel Paris at www.jumbomortgageutah.com is the mortgage professional for jumbo loans in Utah and can custom fit you with the right rate and fee combination to meet all of your Jumbo Mortgage needs.