Question:

How to cut rates with jumbo mortgage refinancing?

Answer:

Well, jumbo mortgage refinancing might make sense if jumbo rates in your state are significantly higher than jumbo rates in other states. To maximize your jumbo refinance rates, try working with a mortgage broker to match you with appropriate jumbo loan lender operating in another state.

Sometimes, you can get better jumbo financing using mortgage lender services from across the country.

Can I avoid a jumbo loan refinance?

If you need better rates on a jumbo mortgage, you can split the loan in two and fund it as separate conforming loans. If you are thinking of a $600,000 mortgage, you could split it into a first mortgage of $400,000 and a HEL/HELOC/second mortgage for the remaining amount, whichever has the best rates.

The smaller loan amount can be repaid faster and on the whole, you are saving a lot of cash in the long run, as jumbo loans carry much higher rates.

Also, even though jumbo loan amount limits have been increased to almost $729,750 in some areas lenders are reluctant to finance jumbos at conforming loan rates. Thus, splitting a loan larger than $417,000 into two separate loans may help avoid refinancing, and save you tens of thousands of dollars.

Mortgage rates hit their lowest since 1955. Ask the home loan experts we recommend Quicken Loans how to take advantage of them.
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