Jumbo Home Loans

You need to qualify for the largest loan possible

Fixed rate of interest

You end up paying more in interest charges over the life of the loan

You plan on staying in the home long-term

Level principal and interest payments for the full term of the loan

Benefits of the fixed rate are not realized until after the seventh year (7/1 Jumbo ARM is a better option if loan is paid-off within seven years)

You think interest rates will increase

No risk that changing market conditions will increase your monthly payments

Interest rates on Jumbo fixed rate loans are typically higher than conforming fixed rate loans

You don't expect your income to increase significantly over the coming years

You plan to be in your home 5-10 years 

Rate is lower than a fixed-rate mortgage - increasing your buying power

Rate is typically slightly higher than a Jumbo 5/1 ARM

 You want peace of mind knowing that your rate adjusts only every five years, not annually

 Payment stability - your rate and principal and interest payment adjust only every five years

You're looking for an initial low rate and payment, but afraid of annual rate increases 

Smaller number of rate adjustments during the life of the loan saves you more money

 Lower payments allow for more cash flow

 Flexible down payment options

If you want a longer initial fixed period than the 3/1 ARM

Initial fixed interest rate for five full years 

It's riskier if you don't expect your income to increase over the initial five-year period to cover the change in monthly payment 

To keep your payments low

 The rate adjusts annually thereafter

 Conversion to fixed rate is not available

 To maximize the amount of loan you qualify for

 Allows for higher loan amount qualification and enhanced buying power

 The loan is not assumable

 You plan to stay in the home for less than five years

 You want the stability of a fixed monthly payment for first five years of loan

You want a longer initial fixed period than the 7/1 ARM

Initial fixed interest rate for 10 full years

The interest rate can increase dramatically after the first 10 years

To keep your payments low

The rate adjusts annually thereafter

Conversion to fixed rate is not available

 To maximize the amount of loan you qualify for

 Allows for higher loan amount qualification and enhanced buying power

Product is assumable, with lender approval 

To stay in the home for less than 10 years 

You want the stability of a fixed monthly payment for first 10 years of loan 

 You want a longer initial fixed period than the 5/1 ARM

 Initial fixed interest rate for seven full years

 The interest rate can increase dramatically after the first seven years

 To keep your payments low

The rate adjusts annually thereafter

 Conversion to fixed rate is not available

To maximize the amount of loan you qualify for

 Allows for higher loan amount qualification and enhanced buying power

 To stay in the home for less than seven years

 You want the stability of a fixed monthly payment for first seven years of loan.