Arizona Jumbo Loan Mortgage

Arizona jumbo loan mortgage or an Arizona  conventionanal loan? If you are considering purchasing a loan in the range of $424,100 to $500,000 you might want to put more money down and obtain a Conventional loan. Conventional loan pricing is way better than Jumbo loans.

On a Conventional loan, you only need a fico score of 620 or higher. Whereas, on a Jumbo loan you need a much higher fico score.  The reserve requirements on a Jumbo loan are a lot more stricter as well. For loans up to $1 million, you will need at least 12 months worth of reserve requirements. You won’t need that much on a Conventional loan. On a Conventional loan since every lender has different guidelines,  plan on 1-3 months on average for reserve requirements depending upon the loan program.

Don’t get me wrong we can still do Jumbo loans if you need one. However, for some borrowers who have a loan amount between $424,100-$500,000 if you have the money in the bank, you would be better off financially putting the additional money down and obtaining a Conventional loan. The interest rate on the Conventional loan is alot lower which results in a lower monthly mortgage payment. If you really need a Jumbo mortgage, you might want to think about an arm product.  Jumbo arm products typically have a lower interst rate which means a lower payment.  I know what you are thinking.  I want to lock in my interest rate for the next 30 years so I don’t have to worry.  That sounds good in theory but the average young home owners tends to move within 7 years.  Therefore, why pay a higher interest rate if you know in 7 years you will be looking for a bigger or more expensive home.  If you plan on being in your home for awhile then the 30 year fixed rate is better.

Don’t take my word on this. Do the math yourself so you can determine which loan program better suits your needs.
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