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.

Recommended helpful present and future homeowners links:
Why: Refinance to a fixed rate loan while mortgage rates are still low.
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Why: Because FHA loans are insured by the US Federal Government they have very competitive interest rates and are easier to qualify.
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Why: Know and protect your credit report and score.
Link: See All 3 National Credit Scores & 3 Reports Instantly, Online & Free
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Common misspellings: mortage and morgage