Refinancing your JUMBO loan? Yes you can

Refinancing your JUMBO loan? Yes you can


Having Problems Refinancing your JUMBO loan?


Many JUMBO customers are having problems refinancing to get lower interest rates or refinancing to secure a fixed rate mortgage on their current ARM loan. For some JUMBO customers it is not as hard as you might have heard. Currently in Arizona, a JUMBO loan is defined as a loan amount over $417,000. For those JUMBO customers with some equity, there is a solution to their problem. Many of my clients are refinancing to the Conforming loan limit of $417,000 on a first mortgage (rates around 5% 30 year fixed) and using a 2nd mortgage for the remainder balance. A 2 loan "combo" is a great solution. There are a few lenders that still do 2nd mortgages. It is not as easy as it was 2 years ago, but it can still be done and can save a customer thousands of dollars in interest.


Current 2nd mortgage products that are still available are fixed rate loans with terms up to 30 years. Current rates 7%-8%+ and Lines of Credits that are as low a 3.5%.


These types of transactions can also be used to purchase a home. Lenders that we work with allow these "combo" loans to finance up to 90% of the appraised value or purchase price. You will need to have a minimum of 10% down payment.


Talk to an experienced loan officer who knows how to structure this type of transaction. Not every lender can offer these loans, so please make sure your loan officer knows this process. It is a confusing one and can take a few extra weeks to close.


If you have a JUMBO loan and the interest rate is above 6% ask your loan officer to look into this for you. You might be happy you made the call.