Here are some of the benefits of jumbo mortgage that you would want to know before applying for one:
- Decreasing rate of interest – In order to boost home sales in the country and spur economic growth, the federal government had approved a stimulus package in 2009. Ever since that, there has been a regular implementation of stimulus packages because of which rates of interest on the jumbomortgages have dropped consistently. Now, interest rates on the jumbomortgage are almost at ground level and so, they can even be refinanced at never-before affordable rates.
- Wide variety of options – As a homebuyer, you’ll have a lot of alternatives to choose from since there are number of different jumbo loan programs available throughout the country. Similar to traditional mortgage loans, jumbo-loans too have different adjustable-rate or fixed-rate mortgages.
- Doesn’t require multiple loans – When you’ve got a jumbo mortgage, then you won’t probably have to take two or more mortgages. Basically, a jumbo-mortgage would help in to simplify the entire home buying process for you. Earlier a lot of home buyers like you had no other option but to opt for more than one lender to gather the necessary amount of financial resources required to purchase a home in some of the most high-end parts of the country.
Many a times in the past, borrowers were overwhelmed to service one mortgage and
struggled to keep track of its monthly payments. So, imagine how would you manage
with two mortgage loans?
- Fulfills all the financial needs – No matter how much mortgage loan you need, a jumbo mortgage will be there to fulfill all your financial needs to buy a house. This is possibly the most prominent advantages of such a home loan. Real estate properties are costly and as the statistics show, at least seven out of ten home buyers have to apply for some kind of a home loan to buy one. However, with the presence of a jumbo mortgage, there is no need for you to usurp your savings in order to purchase a large or costly house.
At the moment, you may get some of the most attractive offers from the banks and other financial institutions, if you apply for a jumbo mortgage. A lot of them are offering special offers on jumbo mortgage loans like private medical insurance, reduced lender charges, faster processing of loan applications and so on.
Apart from all the advantages of a jumbo mortgage, there are certain aspects of it that tend to make this kind of credit a bit riskier and tougher to obtain than traditional mortgages. This is because it comes at a very high rate of interest, demands high monthly income and looks for other assets owned amongst other things to make you eligible for a jumbo.