For real estate in more expensive markets, like New York City, Los Angeles, and San Francisco, taking out a jumbo loan will assist in paying for these pricier properties. These loans also allow for more flexible loan terms, allowing the borrower to adjust the amount of time on the fixed-rate loan or change the mortgage to be adjustable rate.

One thing to keep in mind: these loans will naturally come with higher interest rates. Unlike safe conforming loans, jumbo loans come with some risks. To qualify, a good credit history is essential, so double check all credit reports for any potential inaccuracies. In general, being accepted for a jumbo loan is difficult, so you must also be able to prove that your income is high enough to be able to afford monthly mortgage payments.

It is also recommended to avoid investing in any property if you have any lingering debt — be it from remaining college loans or medical bills — or you can anticipate a large expense coming quickly. Lenders want to know that you have the funds to pay off the loan, and that you will continue to do so for the years on the loan.  Contact Us today for any further information or questions about jumbo loans!