6 Reasons Why Jumbo Mortgage Refinance is a Good Option
A hard money jumbo loan is any loan amount that exceeds the average sum for mortgages in the industry. Currently, in many states around the country, any amounts above $417,000 as set by Fannie Mae and Freddie Mac are regarded as hard money jumbo loans.last updated Wednesday, May 17, 2023
#hard money jumbo loans #Jumbo Mortgage Refinance
| John Burson | Subscribe |
CONTENTS
In Alaska, Hawaii, the US Virgin Islands, or Guam, the hard money jumbo loan amount jumps to $625,000.
As a homeowner, you can take a hard money jumbo secured loan to refinance your loan if you plan to free yourself from all other existing loans. Initially, most homeowners weren’t keen on using hard money jumbo loans to refinance their loans until 2022, when the stimulus package was executed. It was important to have a set amount because of the high-interest charges that people incurred with jumbo mortgages. However, because of the incentive package, hard money jumbo mortgage loans used for refinancing are now a better substitute. Below are some of the main reasons why.
It’s Stress-free to Apply and Qualify for Hard Money Jumbo Loans
It was tough to refinance a jumbo mortgage loan earlier because there were very few financiers to provide this type of loan, and they were ready to risk providing you with such a loan. At that time, borrowers couldn’t get such loans from Fannie Mae and Freddie Mac because the two organizations were not refinancing jumbo loans. However, because the requirement for all conforming loans was adjusted, several hard jumbo money loan financiers, including both government bodies, now agree to take jumbo mortgage refinancing.
Low-Interest Rates
Before the approval of the stimulus bundle in the year 2022, hard money jumbo loan refinancing was almost half a fraction higher than the conforming loans. However, at that time, conforming loans didn’t surpass $417,000. Because the set maximum amount for conforming loans has now been stretched to $615,000, jumbo loans are now within the conforming loan limit, and you can refinance at a lower interest rate. The current interest charges for refinancing your loan from $417,000 to $650,000 is now 5.6% from over 6.5%.
Attractive Offers
Most people who secure hard money jumbo loans can now delight in more attractive packages. Several financial institutions, including the vast money jumbo loans financiers, give their clients special features that you can only find in hard money jumbo loans, for instance, private medical insurance, zero lender fees, and faster loan processing, among many others.
More Flexible
Before the formation of the 2022 stimulus package, hard money jumbo loans could only be approved if a homeowner held a minimum of 20% equity in their property. However, this doesn’t apply any longer. Furthermore, you can apply for hard money jumbo loan refinancing even if your property loan exceeds 100% of the worth of your home.
There are More Options
Because several hard money jumbo loans financial institutions and financing companies are willing to refinance using a jumbo mortgage, you now have several other options. This means you can window-shop and choose the best hard money jumbo mortgage loan financing program that fits your capacity to pay and your budget.
Saves You More Money
If you have a loan amount ranging from $417,000 to $650,000, you can now save more money and use it to supplement your living allowances, pay off some of your credit card arrears, or even save it. You will save more due to the reduced interest rates.
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