Cedar City Jumbo Loans
In Iron County, a jumbo loan is considered any loan that is over $417,000 – which happens to also be known in the mortgage business as the “conforming” loan limit.
It wasn’t all that long ago that there were hundreds of lenders all over Utah who could loan you money on a jumbo loan – but now the jumbo loan market has dried up significantly.
When considering a jumbo loan to finance your home, it is important to first be aware that getting a jumbo loan is going to mean that you are going to need to document your income, assets, employment and credit scores. While this may seem like common sense in today’s market – just a few years ago, you didn’t need to get many of these things verified when getting a jumbo loan – but times have changed.
As a general rule, for jumbo loans, most lenders have a “high limit” that they will go up to. Each lender has a different high limit, generally speaking. Some lenders will lend up to $2 million for a Cedar City jumbo loan and others may go to $3 or even $4 million.
Jumbo Loan Interest Rates
Because jumbo mortgages are bought and sold by private investors (and not usually Government Sponsored Agencies like Fannie Mae or Freddie Mac) they carry a “market” interest rate. And typically that market interest rate is higher than conforming mortgages that are bought by Fannie and Freddie.
Sometimes, it is also possible for a lender to “portfolio” a jumbo loan – which means that the bank will not only originate the loan, but also service it – which means they will collect and process your monthly mortgage payment.
As a general rule of thumb, you can expect that the interest rates are going to be between about 1/4% – 1% higher than those loans on conforming-under-$417,000 loan amounts – but because there is not one set interest rate for the mortgage loan market, it is wise to shop around to see if you can get the best deal available.
So if you live in the Cedar City area (or anywhere in Iron County) you can call me anytime with questions about the jumbo loan programs that are available.
