Jumbo Mortgage Refinance

Written by Ingrid Chen
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When your property value has increased, the economy is conducive to low interest rates, or you want to shorten your mortgage period, looking into jumbo mortgage refinance can be beneficial to your needs. Renegotiating the terms of your mortgage might save you a significant amount of money. With lower interest rates, your monthly payments will be lower, even if your loan is high enough to be over the conforming loan limit. Before you go through the process of jumbo mortgage refinance, there are several things you should pay attention to.

About Jumbo Mortgage Refinance

A jumbo mortgage is any mortgage loan over $333,700 at present rates. The price limits vary if the property is more than one unit. A jumbo mortgage is defined as larger than $427,150 for a two-unit property, $516,300 for a three-unit property and $641,650 for a four-unit property. Loans that are under jumbo mortgage loan amounts are called conforming loans.

Generally, the interest rates that apply to jumbo loans are ¼ to ½ percent more than conforming loan interest rates. No doubt your overall mortgage payments will be higher when proceeding with jumbo mortgage refinance. However, with the lower interest rates, the process of refinancing your home can result in relegating the money you will save into other investments, such as college funds or other home costs.

There are plenty of resources available when refinancing your home. Find a lender who will be honest with you about any costs, and who will not charge you hidden fees. Confused about which lender to go with? Services are available which will compare rates from several quality lenders and direct you to the company that best suits your needs.

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