Important news before you travel:
If you are in the United States you should be aware of certain Travel Advisories which are given to citizens who choose to travel abroad. These advisories can affect you and may even change your travel plans. So before you go to the airport you should always check to see if your destination country is on the List of the United States Government Travel Advisories.
For more information: Check out the link below which will send you to the US Governments official website.
YOUR PERFECT ENGLAND VACATION
Going to England as a vacation will be something you will always remember and will be a part of you the rest of your life. There is so much history and so much to do in England that thousands of pages could not...read more
WHY YOU SHOULD GO
TO GREECE THIS SUMMER
The Every year visitors millions of visitors go to Greece to spend time at the country's beaustiful beaches and reliable sunny summer weather, its nightlife, historical sites and natural beauty which is...read more
GOING TO NEW YORK'S JFK AIRPORT?
JFK international airport is located 15 miles by highway from midtown Manhattan. JFK’s terminals, parking lots and hotels operate 24 hours a day, 365 days a year and cover more than 880 acres.
If you choose to enter the terminal with the passenger, please be aware that only ticketed passengers will be allowed past the security checkpoint. However, you may enjoy any of the areas before security. As an alternative, you may drop off your passengers at the Kiss and Fly located at the Lefferts Boulevard AirTrain Station where they can ride AirTrain free of charge to their terminal in just 10 minutes.
Electric Vehicle Charging
Air travelers who own electric vehicles can charge them at Kennedy International....read more
A VISIT TO STOCKHOLM
Stockholm is the capital and largest city of Sweden, with nearly 2 million inhabitants within its vicinities. Stockholm is not the oldest town in Sweden. As Sigtuna, Sweden's first capital, was sacked by pirates in 1187, the Swedes built up fortresses along the...read more
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EVERYTHING YOU NEED TO KNOW ABOUT
A JUMBO MORTGAGE
A residential mortgage that is larger than $650,000 is referred to as a super jumbo mortgage. It is greater than a jumbo mortgage, the term used to define loans above $417,000. These financial numbers are established by Fannie Mae and Freddie Mac, the two largest secondary market lenders, and are based on the national averages for loan amounts, and these bottom line numbers change regularly. When it is necessary to acquire a loan at or above the jumbo and super jumbo levels, other agencies become involved to cover the full amount. This is necessary to cover residential loans that are in excess of one or two million.
Because risk to the lender increases as the mortgage amount increases, the interest rates for these mortgages is higher than with conventional loans. The rates are also affected by the property type and the mortgage amount.
Since the amount of a super jumbo loan is so great, the number of insurers and investors diminishes. This shrinking of available investors has led to increasing use of specialized lenders who concentrate in this field of investment with greater compensation demands beyond the capabilities of conventional lenders.
Insurers for jumbo and super jumbo mortgages are also fewer. As such, the rates tend to be higher. All of these increases are passed along to the borrower.
Finally, rates are higher because the pool of buyers for residential properties in this range is also smaller. More time and effort is necessary to sell and re-sell the property.
Super jumbo mortgages are usually short-term adjustable rate mortgages. Option ARM’s are also available as well as thirty-year fixed rate mortgages, though they are not as common. Hybrid variable rate mortgages can also be acquired with fixed rate payment intervals three to ten years.
Since traditional banks are not equipped for handling this kind of loan, mortgage lending companies handle the arranging of financing using a combination of investment banks and capital from private mortgage sources.
Jumbo and super jumbo interest rates can be as much as half a percentage point higher than a conventional loan. To avoid this penalty, many borrowers will work with lenders and take out two mortgages at the same, with each one covering part of the total loan amount. One will be designed to cover the larger part of the borrowed amount and is considered a first mortgage. The other is considered a second mortgage, and will cover the remainder of the amount.
A 30 year jumbo mortgage is exactly what its name implies, which is a very large amount of money borrowed for the term of 30 years. When you are taking out a jumbo mortgage you are borrowing more than the amount normally allowed by the GSE. The GSE, or Government Sponsored Enterprises, is responsible for maintaining housing loan availability for consumers. The GSE sets a cap on the amount for mortgages and anything over that is considered to be a jumbo mortgage.
Not all lenders offer jumbo mortgages but there are many out there that will. The process of getting a 30 year jumbo mortgage is essentially the same as it would be for a conventional mortgage. The lender is going to be checking your credit history and score as well as your employment history and current debt load. You will need a sizable down payment, as getting a jumbo mortgage without one is unheard of. There will also be fees associated with the 30 year jumbo mortgage that you must be prepared to pay up front at closing.
Because the cost of the home you are purchasing is so high, should you decide to sell you will find it’s not going to happen as quickly as a more modestly priced one might. For this reason you need to be very sure of your ability to pay this 30 year jumbo mortgage’s monthly payments so that you don’t default on your loan. Your lender of course will see at the start if you are able, but we can’t always control the unforeseen in the future. Though your income and ability to pay are fine now, you must consider that this is, after all over the term of 30 years.
If the home you want to buy is indeed over the cap of the GSE then you are looking at a 30 year jumbo mortgage. Time to look ahead at whether this is the direction in which you want to go and feel you are able to do so. If so, you need to do some preliminary planning. Speak with your loan officer about how much of a down payment will be required and what your closing costs will be. Remember, as you are planning ahead for a 30 year jumbo mortgage to also consider the costs of homeowner’s insurance and property taxes.
The 30 year fixed jumbo mortgage is an attractive loan option to some, but utterly unaffordable to others. The term “jumbo mortgage” has a meaning specific to an upper-limit that Fannie Mae and Freddie Mac, the largest market lenders in the United States, are willing to purchase from the original lender on the secondary market.
The industry standards for conforming loans (those that adhere to the parameters as outlined by government-sponsored enterprises in the United States) are overshot in the case of a 30 year fixed jumbo mortgage, meaning that the maximum these secondary lenders will purchase has been exceeded.
To break down the definition of a 30 year fixed jumbo mortgage, you must understand two different concepts. The first is the concept of a 30 year fixed rate; the second, the idea of a jumbo mortgage.
For starters, the interest rate in a 30 year fixed plan is always the same, from the first to the last year of mortgage repayment. Unlike floating or variable mortgages, the amount of interest an individual or family is responsible for never changes.
A jumbo mortgage (or jumbo loan) is a mortgage that exceeds the $417,000 limit in most portions of the United States, although some high-cost areas in the continental states have a limit of $729,750.
When it is determined that an individual or family can afford the cost and interest payments of a larger mortgage, investment firms and banks will often allow them a jumbo mortgage. These mortgages generally have interest rates around 6.5%, although rates near 8% have not been uncommon and as of 2009, such rates have sunk well below the 5% mark.
When interest rates drop, insurance companies and banks are often more willing to lend the money toward such an investment. A 30 year fixed rate, as mentioned above, simply means that the interest rate paid during the term of the loan will not change. 30 year fixed rates protect buyers from rate fluctuations, and simplify the payment process.
Many people can benefit from a 30 year fixed rate mortgage, and jumbo mortgages are often more than affordable for families who know they will have the finances to purchase a home in the higher price range. A 30 year fixed jumbo mortgage is best suited to those who can afford the higher interest rate, and for those who plan on owning the home for an extended period of time.
When all is said and done, pursuing a jumbo mortgage is not a risk for many people, and indeed can result in a great purchase at an attractive price. The 30 year fixed jumbo mortgage is suited to the long term tastes of many looking to buy while rates are still low.