Jumbo financing in Orange County is making a big comeback in 2012 after several years on the sidelines. And it should get better in 2012 as more private equity enters the market. While there are plenty of short term adjustable rate mortgage programs available, the 30 year fixed program is also making a comeback.
Jumbo Loan with No Income Documentation
Don’t laugh. A new program is available for Jumbo loan borrowers in southern California which allows funding with no income documentation. But this program is not for everybody. The borrower must have reserves in the bank equal to the amount of the new loan. For example, a loan of $1,000,000 would require reserves in the bank, stock account etc equal to at least $1,000,000. Also, depending on where the assets are held or what form they are in, more than $1,000,000 may be required. Still, for a self employed borrower with complicated tax returns but who has plenty of reserves, this is a great option.
Jumbo 30 Year Fixed
The Jumbo 30 year fixed had all but disappeared a few years ago. Now more lenders are offering fairly low Jumbo 30 year fixed rates. And it should get better in 2013. Rates are best for those borrowers with at least 25% equity. And of course 40% equity is optimal. And for those retired Orange County Veterans, don’t forget about about the VA loan program. Rates are very low and loan to values are very high. You just need to be an eligible Veteran.
Jumbo 7/1 ARM Program
The short term adjustable rate mortgage programs continue to be popular. The 7/1 ARM comes with a very low rate and even offers in interest only payments for those looking for increased cash flow. The rate is fixed for 7 years, which is plenty long enough for most borrowers and can allow them to save thousands of dollars over the initial 7 years.
For example a $1,000,000 on a 30 year fixed at 3.875 would have a payment of $4,702.37. After 7 years the balance would be $858,102. The same loan on a 7 year ARM at 2.875% would have a payment of $4,148.92, a $553 monthly savings. After 5 years the loan balance would be $837,091, or $21,000 less. So over 7 years not only does the borrower save $46,452 in interest payments, but also another $21,000 in principal. It would take several years of worst case scenarios assumptions to make up for nearly $70,000 in savings.
Which Jumbo Program is Right for You?
As more options become available it will become more important to work with a Jumbo loan specialist who can provide a full analysis of the programs available. Emery Financial Group, a division of WJ Bradley Mortgage Capital LLC has been located in offices in Newport Center Fashion Island for nearly 20 years. Not only is Emery Financial a direct lender (WJ Bradley is one of the largest privately held mortgage lenders in the United States), but also a broker with access to many outside niche Jumbo programs. Tim Storm is a licensed Mortgage Loan Originator (NMLS 223456) with over 20 years experience. He can provide a customized Side by Side Analysis which gives his clients a detailed view at their options.
Authored by Tim Storm, an Orange County, CA Jumbo Mortgage Loan Officer – Please contact my office at Emery Financial Group for more information about an Orange County, CA Jumbo Mortgage. 949-640-3102.
Contact us for your Orange County Jumbo Mortgage:
949.640.3102 | tstorm (at) Emeryfinancial.com