Getting into a mortgage deal is a serious job that merits careful preparation. It is something that you should not fail as it will create a tremendous impact on your finances in the long run.
Jumbo loan rates, San Diego, are one of the areas that you should pay some attention to when applying for a mortgage loan. Why? Because even a percentage point reduction in the interest rate could translate to several thousands of savings.
Jumbo loan rates, San Diego, are impacted by several reasons. However, the industry considers the following factors as prime determinants affecting the interest rate that your lender will charge you on your jumbo mortgage loan:
Credit Score – while a score of 740 will usually qualify for the best interest rates on conforming loans ($548,250-$822,375 in California), some banks offer their lowest interest rates for borrowers with credit scores of 800 or higher. Credit score should serve as your benchmark when applying for jumbo loans – the higher the credit score, the better the chances you can get great rates.
Loan to value – you typically need 20% down just to be approved for a jumbo mortgage loan; if you have an equity/down payment of 40% or more, you can expect even lower available interest rates.
Property type – if you intend to purchase a condo, you will typically be paying higher rates than buying a single-family home.
Occupancy type – jumbo mortgage rates are usually the lowest for primary residence mortgage loans. However, if you intend to apply for jumbo mortgage loans for second home purposes, it usually carries a slight rate increase. Note that many lenders do not even offer jumbo loans for investor purchases.
Lock term – longer rate lock terms (60 days, 90 days, 120 days) lead to higher interest rates, so you have to take note of this as well.