CodeMark TV Episode 14
This is our last talk about loan programs. We’re talking about jumbo loans. I mentioned that jumbo loans are for loans that used to, well I should say, now exceed $424,100.
That’s the new jumbo loan limit. That just changed. It actually was $417,000 before. Now, don’t ask me why I always scratch my head to try to figure it out. When it was $417,000 why wasn’t just $415,000 or why wasn’t it just $420,000? It had to be that weird number in the middle. And, now it’s $424,100 why not just make them $425,000?
Anyway, the new jumbo loan limit is $424,100. So, any loans that you’re going to purchase a house with that exceed that number, you’re going to have to get a jumbo loan.
Now, jumbo loans are fine, there’s nothing wrong with them. There’s a lot of people out there that make a lot of money and like to have a lot of big real estate, and big real estate comes with big price tags. Jumbo loans are for them.
Jumbo loans do tend to have a little higher interest rate because they’re considered non-conforming loan versus the conforming conventional. Again, anything that would be under that jumbo loan limit. The interest rate may a waiver quarter or half a percent higher than whatever is the par interest rate. Interest rates come out on a daily basis and there’s a par rate. That is the number that it would trend like I said a quarter of the half a percent higher.
Nonetheless, it still operates just like anything else. In most cases and most lenders, the only drawback about a jumbo loan is typically you have to have two appraisers. Does that mean anything is wrong with the house? No. Could that prolong the closing? Yeah, cause you’ve got two people that want to look at it.
Other than that, if you can ball like that and you’re ballin’ like that call me up. I want to come kick it with you at your big crib. I’ll also help you do the jumbo loan.