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Bear in mind that this amount may change every year, so you may loose your
jumbo status once the amount becomes reduced or reaches even higher amounts.
The advantage of obtaining a jumbo home mortgage lays in the fact that you
do a single transaction with predictable and well structured re-payment options. The whole
transaction also speeds up once the total loan is approved.
The second advantage sees you dealing with a single institution which
keeps financing costs down significantly.
On the negative side of jumbo home mortgage one surely can not ignore the
higher interest rates these loans come with.
To understand why you must pay a higher fee than ordinary
home loans, you should know that your jumbo loan is very difficult to sell to investors who buy
home loans. By raising the interest rates, these massive loans become more salable on the
market.
Property buyers are also much more likely to be refused a jumbo loan. This
adds major inconvenience to your house buying process as there may be a time limit before you can
reapply for a lower loan amount later.
Consider splitting your home mortgage into two separate
loans to avoid getting jumbo status. It may be a bit less convenient than getting a single loan,
but the savings on interest rates will see you smiling in the long run.
The idea is to supplement your initial mortgage with a smaller personal
loan to enable you to afford the expensive property you may be interested in purchasing.
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