For any aspiring homeowner, the mantra of “go big or go home” often resonates during a search process as more options continue to fill up today’s real estate market.
As opposed to the olden days where a humble two-room apartment would suffice for any aspiring homebuyer, buyers today are hell-bent on getting the home of their dreams. While it may be great to aim high when getting the home of your dreams, however, there’s just one barrier that’s bound to get in the way: Financing.
The Problem of Capacities and an Alternative You’ll Need to Consider
Admittedly, the dream of owning a lavish home is one that can be far out of reach because of rising real estate prices and land scarcity. Although modern loans afford opportunities to own a home at a reasonable price, the truth is that these options are still limited in nature as they can only cover a price up to a certain extent.
When a home buyer runs into a listing, they want but can’t afford as its price exceeds their maximum budget, they may turn to a jumbo loan. Through this alternative loan option, the average American home buyer can go past the $510,400 ceiling that comes with standard loans and secure up to $765,600 in assistance alongside savings and a stronger buying capacity!
Although this loan option may prove to be a saving grace when it comes to securing a dream home, there comes a time when the monthly costs become a bit too much to bear. This is where refinancing comes into the picture.
Is It Possible to Refinance?
Similar to conventional loans or financial assistance programs, jumbo loans are in no way exempt from the possibility of being refinanced as they run on the same principles as any other mortgage. Somewhere along the way, you may want to consider opting for such a possibility and you won’t have to worry at all because it will always be available for you to take. Desert Springs Mortgage, as a matter of fact, offers such a service for Arizona homeowners!
Why Should You Consider Refinancing?
Refinancing jumbo loans have become a crucial alternative for most homeowners because it allows any homeowner to pull cash out when they need it most.
Beyond cashing in on a homeowner’s equity, going for such an alternative also yields a significant opportunity to make sure that your investment works out on your terms. In particular, those with adjustable-rate jumbo mortgages have become particular towards considering such an alternative because it allows them to reduce their monthly payment and cut their interest rates!
Looking to Refinance? Here’s What You Need in Order to Qualify
In terms of requirements, the set list of standards that one needs to follow to qualify for a jumbo loan refinance is straightforward. However, it’s also important to note that the whole process can be complicated. If you’re looking to refinance your current jumbo loan mortgage and get more favorable terms, here’s what you need to fulfill:
- A FICO score of 660 or higher
- A maximum loan-to-value ratio of 80 percent
- A maximum debt-to-income ratio of 43 percent
- No form of bankruptcies within the past seven years
- No more than four mortgaged properties under your name
- A concrete proof of your cash and liquid reserves to cover the loan’s principal, associated taxes, insurance, and interest for six months to an entire year
Desert Springs Mortgage Company in Phoenix
If you’ve managed to handle the repayments on a jumbo loan for your dream home’s mortgage for years, then it’s worth considering a refinancing if the monthly dues get a bit too heavy. With the help of a dependable refinancing specialist or lender, you can start borrowing on your terms and move towards a more favorable repayment experience every month!
We’re a mortgage company in Phoenix that specializes in handling jumbo loans and refinancing for homeowners all over the city. Get in touch with us today by calling (623) 432-1309 for a free jumbo rate quote!