Jumbo mortgage is something where the borrowers need large home loans and they will find an increasing number of lenders who are ready to offer jumbo mortgages. They will get it at low rates but the qualification requirements will be strict and adhere to certain rules. In most of the countries, any mortgage that is more than 417000 dollars is a jumbo loan.
There are certain key points that one should consider in the Jumbo mortgage in Texas.
How big is Jumbo?
When it comes to America, the Jumbo mortgage varies according to state. The Jumbo mortgage in Texas may differ from that in Arizona and similarly other places. The FHFA has set the conforming loan limit size for different areas on an annual basis. At present, a mortgage in excess of 424,100 dollars will be considered as a jumbo loan. But the conforming limit is higher in various areas with higher home prices.
How To Qualify For Jumbo Mortgage?
If you have set everything right and looking for a house in Texas, that costs close to half a million, and you don't have much money in the bank, then you may need a mortgage. The mortgage loan limit in Texas is around 424,100 dollars and it applies to all counties in Texas. If you wish to get one, then you have to face several hurdles than a homeowner applying for a regular loan. That’s due to risk involved in mortgage jumbo loan. There are several agencies that specialize in mortgages as low as 5 percent down.
Jumbo Loan Rates
Due to the larger money involved, the jumbo mortgages carry higher interest rates than regular mortgages. This is true in Jumbo mortgage in Texas area. The average annual percentage rate (APR) for a jumbo mortgage is almost same with conventional mortgages. Certain companies provide mortgages in Texas as low as 5 percent down.
Down Payment on Jumbo Loans
The down payment on jumbo loans requirements has loosened over time. In Texas, the jumbo mortgage loans required home buyers to put 30 percent of the house's purchase price. But now, this has fallen to as low as 10 to 15 percent. Some companies even provide it as low as 5 percent down mortgages as well.
In Texas, if you qualify for these mortgage loans, it doesn’t mean that you should take it. You should refrain especially if you are counting on with a substantial tax break. The mortgage interest may be deducted from your taxes that you paid for a year.