What do I know about jumbo loans? Apparently the market is fine – although brokers continue to lament the reduced number of lenders offering the product. But frankly, most jumbo borrowers think of the local mortgage company first.
Zillow recently published an analysis on how differing state regulation impacts borrowing costs and have released a follow up report that estimate state-level borrower protection laws have minimal impact on the APR. Zillow found that a borrower with a FICO score between 640 and 719 could expect to receive quotes with an APR 27 basis points lower than a borrower with a credit score below 640. With a credit score in the range of 720 to 850 a borrower could expect to receive quotes with an APR an additional 65 basis points lower than a “good” borrower. The down payment amount also affects the APR. For example, a borrower putting down 10 percent can expect to be quoted an APR 20 basis points higher than a borrower putting down 20 percent. For those putting down 5 percent, the APR is on average, 46 basis points higher. Borrowers seeking financing for a jumbo loan could also expect to receive quotes with an APR 60 basis points higher than a conforming loan. Zillow’s report suggests that having good credit results in more quotes and lower borrowing costs and that differing state-level borrower protection laws have more of an impact on the ability to get a mortgage rather than the cost of the mortgage.
Elite High Balance offers some of the best conventional high balance rates and pricing for your top-tier clients. You’ll receive industry-leading turn times, direct access to underwriting, and award-winning technology with every loan.
- 760+ FICO
- 80% LTV or less
- $417,001+ loan amount
- Property inspection waivers honored
- Underwrite to AUS findings
- Fixed and ARMs available