Yes there are mortgage loan programs that exist for loans bigger than $520,950 in Petaluma and the surrounding areas. If your loan size is bigger than $520,950, your loan is classified as a Jumbo. Jumbo loans traditionally carry more risk to mortgage lenders than loans under that amount, otherwise known as Conventional Loans. However, as the economy has continued to improve, there’s been more appetite for bigger sized loans.
This can be attributed to Jumbo Mortgage Loans actually being priced lower than its Conventional Loan counterparts. It’s not uncommon to see a Jumbo size mortgage interest rate on a 30 year fixed rate at around 4.25% containing no points. When stacked up against the Conventional loan coming at 4.375% with .25% discount points, the Jumbo can certainly be very attractive.
In order to finance a Petaluma Mortgage over $520,950 you’ll need to have at least 10% equity in your home. Additionally, a very attractive option for homeowners is the ability to refinance a mortgage with less than 20% equity without monthly PMI. The program is called lender paid mortgage insurance and it is available Jumbos. Another option ….is some Jumbo loans even allow larger debt to income ratios which is ideal for self-employed individuals who write off business expenses. Conventional loans by contrast, usually contain a very rigid 45% debt to income ratio allowance, so the fact that some Jumbos go as a higher as a 50% debt load is a sign credit is continuing to open up.
If you are looking for a mortgage in and around Petaluma, California-we can help. Learn more by getting a complementary mortgage rate quote for your situation.