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Jumbo Alternative Home Loans In California | CA Jumbo Loans - YouTube
Channel: Teresa Tims
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- Hey Margie,
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Please accept my apology.
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I started to send this yesterday,
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it was kind of later in the day
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and there's just so much to say.
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There's so many different things
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so I'm just gonna kind
of give you an overview
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and then I'm gonna send
you a shorter email.
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There are loan limits in the
areas that you're looking
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to purchase in,
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Riverside and San Bernardino County.
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The conventional, conforming,
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Fannie Mae, Freddie Mac loan limit,
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which is the traditional loans
that are in the low fours
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when you put 10 or 20% down.
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Those loan amounts or
loan limits cannot exceed
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424 thousand, so that would be like a 435,
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445 sales price.
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That's a straight, regular loan.
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Conventional loans have two features,
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one with mortgage
insurance, and one without.
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Let's say if you have a mort...
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You put 10% down, there's
mortgage insurance factor,
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let's say it's 100 thousand dollars,
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your monthly mortgage insurance
would probably be 50 bucks.
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Maybe 70 dollars, 50 to 70 dollars.
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Let's just say the interest rate was 4.25.
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If you did something
called, Lender-Paid MI,
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Lender-Paid Mortgage Insurance,
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what that means is they
put the mortgage insurance
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in the interest rate.
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The interest rate is not gonna
be 4.25, it's gonna be 4.5.
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Now you're like, "4.2 to 4.5,
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why do I want a higher rate?"
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When it's prudent to look at this loan
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is when the savings are
truly that much more,
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or that much greater.
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In higher loan amounts, we often find
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that it's a lot better
to go out of the gate
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in a lender-paid mortgage insurance loan,
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just because the payment
is so much better.
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If you're at 200 thousand or something,
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maybe it's not that much better,
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but it almost is always that much better.
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We put a lot of people
into these LPMI loans
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and typically we do them at the 5% down
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and 3% down range, usually.
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While you're looking at 450 to 550, so
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over at those sales prices,
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now you're in something called "jumbo",
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and jumbo loans want 15-20% down.
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Mandatory across the board.
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Jumbo loans are underwritten
by Fannie Mae and Freddie Mac,
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and they have all these guidelines,
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the debt ratios are tighter,
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jumbo loans are just a
lot more restrictive.
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In qualifying, you have to
have certain credit scores.
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With Fannie Mae and Freddie Mac,
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there are just general,
across the board rules,
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but some lenders apply different overlays,
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so it just kind of depends on
what lender you go through,
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how well versed your loan officer is
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at evaluating your
situation and placing you
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with a lender that you fit best with.
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There are solutions to this
15 or 20% down, jumbo dilemma,
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by doing a combination loan
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or seeking out lenders that
are doing what's called
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"alternative" or "portfolio financing",
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where these loans are not backed
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by Fannie Mae or Freddie Mac.
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They're underwritten,
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underwritten and approved
and guideline set
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by the investors that are
gonna purchase and bundle
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and resell this one product.
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This is something that we're
seeing more and more of.
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Let's call it an "80-10-10" product.
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So you've got an 80% first mortgage,
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and that would be probably somewhere...
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We have one right now
that we're pricing out
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and that we're doing for a client
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and they have a 740 Fico
Score, and the rate is 4.3.
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4.375 with 10% down.
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They're not paying any
points, it's just a regular,
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vanilla, first mortgage.
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Then they're doing a 10% second mortgage
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and the rate on that is in the sevens,
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but it's amortized over 30 years.
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A lot of lenders are doing a 15 due in 20,
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and the rate is like six or seven,
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but it's amortized over 15
or amortized over 20 years,
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so it makes the payment a lot higher.
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This second, even though
the rate's higher,
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it's stretched out over a longer period,
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so you're yielding a lower overall rate.
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No, yielding a lower, overall
payment than if you were
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to go into a product...
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if you were to go into a
product like a jumbo product.
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Jumbo pricing is not that pretty.
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I'm talking not that pretty,
15/20% down, 4.8 to 5.3.
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(dog barking)
This combo product...
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I have a couple little office dogs,
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so you hear that. (laughs)
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This jumbo product
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rate is high,
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so this combo product,
when you do the numbers,
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the combo product has
a much better payment,
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so don't be scared of that
higher rate on the second.
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A brand new product that they have out
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is pretty amazing.
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You can put as little as 5% down,
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and it's a 40 year loan,
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so it's amortized over 40 years.
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Interest only for the first
10, so this is gonna yield you
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the lowest overall payment of any payment,
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and allow you to get in with
the least amount of money.
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So it's a super super cool product.
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The rate's high though, so
when I tell you the rate
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you're gonna be like (gasps)
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"Oh my God!"
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But, interest only the first 10 years
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and a 40 year time frame.
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The payment is going to be
the lowest possible payment
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that you can get in the jumbo realm,
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or the jumbo loan amount,
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and it's gonna also be the lowest payment
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and the lowest down.
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Remember though, these
loans are underwritten
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to specific guidelines
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and they don't go
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to standard Fannie Mae and Freddie Mac,
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so all of our knowledge that we know
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whenever we originate one of these loans,
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we just have to go back and just make sure
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that you meet these investor guidelines.
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A lot of times, with the
lenders that I'm using,
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I'm able to do what's
called a 43 debt ratio.
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A lot of jumbo lenders are
restricting you to a 38, to a 40.
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If you have a second mortgage involved,
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you're gonna be at a 43
debt ratio in most cases.
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(giggles)
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This 95, 40 year interest only product,
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you're probably looking at
a rate in the high fives,
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but again don't let that scare you
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because it's amortized over
such a long period of time.
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I think with you, every case
is just highly customized
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and evaluated in several different ways
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and the options I've presented to you,
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so that you have the
information in front of you
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and that you know
everything about that loan
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and that you're making
the decision that's best
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for you and your family.
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And you have me, you have my guidance.
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My job is to advise you,
present you the options
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and then tell you what
I think you should do
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because I am the professional.
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I'm the consultant.
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I have the knowledge,
I do this all the time.
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I have a real estate broker's license
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along with a mortgage broker's license
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so let me take care of
you and your family.
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That would have been a huge email.
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Alright,
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so you guys give me a call at
909-920-3500 when you're ready
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to talk about this.
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Have a wonderful evening.
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