6 Factors to Consider If A Jumbo Loan Is Right for You

When considering whether a jumbo loan is a right choice for you, there are several important factors to take into account. In this blog, we will discuss what a jumbo loan is, the pros and cons of taking out such a loan, and the important considerations to make when deciding if a jumbo loan is right for you.

What Is a Jumbo Loan?

A jumbo loan is a type of mortgage loan that exceeds the limits set by the Federal Housing Finance Agency (FHFA). These loans typically require a larger down payment and have a higher interest rate than conventional mortgages. They are typically used to finance the purchase of luxury homes or homes in expensive areas where the cost of living is high.

Pros and Cons of Taking Out a Jumbo Loan

The major benefit of taking out a jumbo loan is that it allows you to purchase a more expensive home than would be possible with a conventional mortgage. The downside is that the interest rate and down payment requirements are usually higher.

Additionally, jumbo loans are not typically backed by a government-backed agency, so there is more risk involved in taking out this type of loan.

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Factors to Consider When Deciding if a Jumbo Loan is Right for You

When deciding if a jumbo loan is the right choice for you, there are several important factors to consider.

Type of Property You Are Looking To Buy. Jumbo loans can be used for a variety of properties, but they are particularly useful for luxury or high-end properties. If you are looking to buy a more expensive property than the average home, then a jumbo loan may be the right option.
Loan Terms. Jumbo loans typically come with higher interest rates and stricter repayment terms, so you must make sure you can afford the monthly payments. Additionally, it would be best if you thought about the length of the loan and whether or not you will be able to pay off the loan in a timely manner.
Interest Rate. Jumbo loans typically have higher interest rates than standard mortgages, as they are considered higher risk. This means you should shop around and compare different lenders to find the best rate available.
Down Payment. The down payment required for a jumbo loan is usually higher than for a conventional mortgage. Make sure you have enough saved up to make the required down payment.
Credit Score and History. Your credit score and history are important factors in determining whether you are eligible for a jumbo loan. Jumbo loans usually require a higher credit score than traditional mortgages, so it’s important to ensure your score is up to par. Additionally, you may need a higher income and a lower debt-to-income ratio to qualify for a jumbo loan.
Borrower’s Assets. Lenders may require borrowers to show proof of liquid assets that are equal to or greater than the loan amount, as well as an investment portfolio. This is to ensure that borrowers have the means to pay off their loans if they are unable to make their payments.

Conclusion

Overall, jumbo mortgages can be a great option for individuals looking to purchase a high-end home. However, borrowers should be aware that these loans typically come with higher interest rates and down payments and that lenders may require the borrower to have a higher credit score and a larger down payment.

Borrowers should also be aware that lenders may require proof of liquid assets and an investment portfolio.

Contact Your Mortgage Specialist Today!

Are you looking for a Cape Coral mortgage broker? American Mortgage Solutions FL is here to help! We are licensed in Florida, Indiana, and Colorado and are proud to serve the home buyers’ and homeowners’ dreams. With decades of mortgage industry experience, we are committed to providing the best possible mortgage rates and services. Contact us today at (502) 327-9770 for Louisville KY Office and for Cape Coral FL Office (239) 766-8344 to see our home loan services and how we can help you.

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American Mortgage Solutions - Louisville KY

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Chloe B.

13:11 30 May 24

Lisa was the perfect person to help me through the process of getting my first house. I truly can not recommend her enough!!

James M.

17:54 21 Mar 24

Lisa Bokhari at AMS did a fantastic job! She always kept me informed at every step of what can be an arduous process when financing a new home. We were very happy with her and will use her again when the time comes!

Melody M.

02:17 16 Feb 24

I have used Lisa Bokhari several times.. Smart ! ! Understands all the programs which enables her to service clients and get to the closing table. Keeps everyone informed and can “hold hands “ if necessary, one of the best !

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21:15 08 Feb 24

Lisa is awesome! I found an amazing house but I knew I would it was way over the amount I was approved for. I express my love for this house and Lisa did the impossible. She was very thorough, organized, and precise. She worked hard for me and my kids to get our dream house. Every obstacle that came our way she took care of it. She literally had a plan A, B, and C to ensure I got the best deal. I really appreciate what she did for me and my kids. If you want someone that's gonna get the job done correctly she's the woman you need!Thank you Lisa! We love our home!

Victoria Diaz

01:12 20 Jan 24

Working with American Mortgage Solutions has been a great experience. I worked with Kris and she answered every question and truly made our home buying experience the best.

Daniel Abston

16:06 28 Dec 23

We had an awful experience with Joel at American Mortgage Solutions. Initially, the mortgage application etc. was fine, but we ran into a two-fold problem with the appraisal. It took two weeks to find someone who would appraise our berm style home, which only ended up happening because we did the legwork ourselves to find out we could offer more money to entice the appraiser. Joel did not even suggest this was an option.Then, we waited for over two weeks after receiving the appraisal to find out (from the mortgage processor, not even Joel himself) that the underwriters would not accept the appraisal because of having no berm comps in our rural area. We were previously told (again by the processor, not Joel) that the underwriters had requested revisions - but no one indicated there was anything to worry about, or that it would possibly be a stopper to the whole financing. Joel was radio silent during this period, NO communication whatsoever. The day we found out our appraiser was not accepted, Joel was sick so we called the office to ask someone else to call back to discuss asap, but to this day NO ONE has called. Joel sent one text two days later saying he was still sick but to reach out to the processor for updates. Our loan was just days from closing (we thought) when we found all of this out, two weeks before Christmas no less.Fortunately, we went right away to a local bank that closed a new loan for us in 10 days - using the original appraisal, the title work that had already been completed, turned our FHA loan into a conventional loan, and pointed out that the fees charged by AMS for origination were $11K more than what the local bank charged, saving us a very significant amount. We should have started there to begin with, to save us from a very stressful house buying experience.

Re-Re Smith

17:28 15 Dec 23

Lisa is a true miracle worker! My client had several sources of non-traditional income and because of that, other lenders were not able to get her approved. Not only did Lisa get her approved, she got us to the closing table seamlessly! Lisa kept me updated on the status of the loan and she was always available if I had questions or concerns. Lisa was a pleasure to work with. 😄

Christa Edwards

14:12 18 Aug 23

We love working with AMS. The team has been courteous, knowledgeable and focused on our project. They have gone above and beyond to make this process easy and stress free for us.

Billy Joe Harmon

20:25 28 Jul 23

Lisa Bokhari is the absolute best! She made the house buying process so smooth and was a complete joy to work with. I was really amazed at her fast response time to any questions I had, there were lots. Very personable and easy to talk to. Do your self a favor and give Lisa a call!

Tim Koehler

14:34 16 Jun 23

great company to partner with!!! excellent service and attention to detail!

JaWon Dunn

16:12 14 Jun 23

Great Service!

Megan Brasill

14:18 07 Jun 23

American Mortgage Solutions wowed me with their knowledge on the home buying process. They were incredibly professional and every person I spoke with was helpful!

Tara

13:57 23 Feb 23

I can’t express how relieving it was to work with such a professional. Lisa was amazing! This was my first home purchase and I was working from out of state and incredibly busy, Lisa made the process incredibly efficient and seamless. I had no surprises, she kept me abreast of all the steps, answered many of my questions and amplifying information. She also was incredibly timely in responses and even notified me in advance if ahe was out of the office. She left me questioning nothing. Her knowledge of the area, the process, market were all exceptional - this is her profession and she is a subject matter expert! She has continued to provide me support regarquestioma with the market as wellAs other resources months later. This is the the team and professional you want working for you and I do not say that lightly!

Michele McKinney

17:15 08 Feb 23

Lisa Bokhari went above and beyond for me throughout my loan process. She helped me through a difficult refinance and never accepted no as an answer for the loan approval. She tenaciously works for all of her clients, but clearly has a passion for working with single moms and helping them gain some much needed independence.

Kim Arehart

18:54 18 Jan 23

Lisa Bokhari with American Mortgage Solutions is AMAZING!! I have been a realtor for going on 13 years. I have done several loans with her and she has been on top of everything! Constantly watching to make sure she is ready to address any potential issues with her borrowers. She always responds quickly and knows how to get things done! If you need a mortgage, you need to give her a call!

Cindy Baker

21:16 16 Aug 22

My divorce attorney referred me, and I found Lisa to be incredibly helpful. She is very knowledgeable and good at her work.

Nichole Leachman

20:40 19 Jul 22

Very thorough and kept me abreast of every step of the way and we closed in a timely manner. I would definitely work with Padam again.

Sarina Plumley

17:30 16 Jul 22

Lisa Bokhari helped me so much, my credit was horrible from student loans, she worked with me an walked me through all the steps to get everything on my credit done an even went above what others told me, everyone turned me down but she didn’t she fought to help me get my home an I am forever grateful for her. She is one of the best I have ever see.

Caleb Smith

19:01 13 Jul 22

Lisa Bokhari was a pleasure to work with, she was aggressive, well-versed, and knowledgeable about the entire process. Would love to use her again for our next purchase!

Martha Nannie

20:32 01 Jul 22

We recently closed a deal with American Mortgage Solutions and it was the best and smoothest transaction we have ever done, and there have been plenty. Our loan officer was Lisa Bokhari. We loved working withLisa. She was very professional, knowledgeable, caring, truth worthy and a pleasure to work with. She always kept us posted through the entire process. Lisa always returned calls and answered all questions and concerns we had and kept us informed. She worked diligently and got us approved in 10 days, that was remarkable. Even after loan was approved she contacted us to make sure all our needs were met and if she could be of any other assistance. Thanks Lisa Bokhari and thanksAmerican Mortgage Solutions.

Darlene Swanagan

22:15 30 Jun 22

Lisa Bokhari did an amazing job. She got me approved quickly. I appreciate her as she held my hand thru the process. When she says she is gonna make it happen, believe me she does.

Lovely

20:52 30 Jun 22

Lisa was very attentive to the loan process and the closing date. She kept me informed throughout the process so that I knew we were on-track to close.I will recommend American Mortgage Solutions to my family and friends, it was a pleasure working together to get our new house Thank You ,Thank You !! May God Bless you Always in your business 🙏-Juan & Cristina -June 2022

Kara Pelcher

20:50 30 Jun 22

Fred Sapp

14:20 30 Jun 22

We would like to thank Padam, Loan Officer for his professional handling of our customer’s financing and his help in making the closing go smoothly. Throughout the process he made the buyers very comfortable with their purchase decision.We look forward to doing business with him in the future.Fred Sapp, RealtorBHHS Parks & Weisberg Realtors

Rob Sightler

20:03 28 Jun 22

I recently closed a deal with American Mortgage Solutions. Padam Powdyel was the loan officer. He made this transaction smoother than any deal I've closed in a while. He closed a conventional loan in about 16 days (approximate). He was able to tell me on day one that the appraisal will be waived for this loan. He communicated often and always came through on his promises. If you are in the market to buy a home I highly recommend calling Padam to help you through the loan process.

Stephaine

15:17 05 Apr 22

They helped me get a home loan and even assisted with resources to build my credit up. Then they helped me refinance as well. Highly recommend!

Rowena Harris

15:38 24 Jan 22

Tommy Huff

12:40 08 Dec 21

Good local mortgage company. I would recommend.

Sam Mitchell

19:29 27 Sep 21

The buyers of my home used this bank and they were very unresponsive and lacked any sense of urgency. We had to push our closing almost 2 weeks because of them and that sale was holding up a multitude of others. I would recommend going else where for a loan.

Padam Poudyel

07:25 10 Sep 21

It's is the best company to work, very helpful and quality service.

Alecia Evans

03:33 03 Sep 21

I loved working with Brady Webb's team at American Mortgage Solutions. They were available whenever I needed them, and they made the mortgage process go smooth.

DeWayne Diehl

18:36 24 Mar 21

Very professional and courteous!

Bruce Flacko

21:33 12 Feb 21

Spam

Auntie M

14:32 29 Sep 20

James Wright

00:12 31 Mar 20

Brady and his team went above and beyond to make sure my wife and I close on our home with no problems!

Edward Risinger

19:53 30 Mar 20

I have been using Brady and his team to purchase and refinance for many years now. He consistently delivers on a thorough process, that overly delivers what you need. He is up front, honest, and you can depend on his team to have your back. It's not the easy purchases or refi's that tells the tale. It's when you have difficulty, that their expertise and understanding of the business shines. I would not hesitate to send him any friend or family member because know they will be a professional team you can trust to get you the best deal.

Star Trek

21:01 06 Feb 20

It was great working with David Olivarez at American Mortgage Solutions.David went above and beyond in guiding us through the entire process .He is fast, friendly and knowledgeable. Thanks again.

David Hittle - Realtor

01:00 25 Jan 20

Always Happy to meet up with Greg Lapp

Iva Hristova

13:54 14 Jan 20

2muchBoost

22:07 13 Jan 20

Brady Webb and his team at American Mortgage Solutions provided excellent service through the entire loan process. They made getting a mortgage loan easy, and were very knowledgeable and professional.

Stephanie Clements

21:58 07 Jan 20

Brady and his team are detail oriented and work to make sure the realtor and client have the best experience. They help train realtors to be more effective and grow their business and they help homebuyers find the best programs and qualify for the best rates. Highly recommend

Monique bachelor

23:41 12 Dec 19

They made my first home buy experience easy and seamless and always there for any question

Sandy Vertrees

01:22 30 Oct 19

Brady and Matt were fantastic. They are very professional and very knowledgeable in what they do. Our situation was a bit complicated but they kept us informed throughout the whole process. I would definitely recommend them for your mortgage needs.

Clarence Mccoy

18:59 08 Oct 19

Glad I got to do business with them help me every step of the way highly recommend them

Eddie Douglas

00:56 27 Sep 19

Brady and his team are AWESOME. From intial contact, through close... JUST AWESOME!!!THANK YOU TEAM!

Justin Richardson

22:19 26 Sep 19

Karen Lamb

16:12 22 May 19

Brady Webb and Matt were fantastic to work with! They were very patient with me, as my loan situation was complicated and took some time to finalize! Throughout the entire process Matt was with me all the way to explain my best coarse of action, and to get me the best interest rate. It took me about a year from start to finish, between looking for a home in my price range to rearranging the loan to suit my complicated circumstances! Can't thank them enough!

Tyler Phillips

00:43 02 May 19

Brady and the AM team worked efficiently and effectively with my family and I to purchase our first home. Extremely professional group that I would recommend to anyone in the market for a home.

Robert Jarvis

15:15 25 Apr 19

The team at American mortgage solutions did an amazing job! They went above and beyond to get my family and I financed on our first home. I would recommend them to any one. Thank you so much to Brady and your team of experts!!!!!!!!

Michael Haynes

21:42 04 Apr 19

Not my first experience with AMS nor my last. I'm a client for life!

Raed Kareem

21:38 25 Mar 19

It was nice time to work with you guys, friendly helpful and appreciate you for your help and I looking to work with you again

Janet Heston

19:33 25 Mar 19

Polite, knowledgeable, and timely. They got the job done.

les nichols

03:25 02 Dec 18

Very professional to work with, did the paperwork a fast amount of time. I would recommend them to anyone, was very pleased with how was handled our.T to everybody in American Mortgage solution for your help it was a pleasure doing business with you, sincerely Les Nichols

Thomas Lindemann

01:21 27 Jul 18

Just closed on our first home - Matt was awesome and took a lot of the stress out of the equation. Also had some ideas that ended up saving us money and lowering our interest rate during the process. I highly recommend working with this team!

Gregory Tolbert

20:18 24 Jul 18

The most professional and important decision I hv ever made in my life. Brady Webb and his team Take the stress out of buying a home. Give them a try and I guarantee you will be as satisfied as I am . THANKS TEAM BRADY YOU GUYS ARE THE BEST. MR& MRS TOLBERT

Eiler Marketing

16:39 28 Jun 18

I have worked with Michael Cragwall (Mike) for a while now. I will say he is very understanding and has helped me learn a lot about Mortgages. I plan on purchasing a house soon and would highly recommend him if you are looking to purchase a home or needing financial help on a home.

Laura McFate

18:20 22 Jun 18

We spoke to many local mortgage brokers explaining our situation and Brady's team was the only one that said they could help us get a house. Matt in his office is AMAZING! He kept us posted on progress during the whole process. Even when we were waiting for our next step, he still checked in with us. Matt was very personable and you can tell he cares about his clients as individuals. He understood the challenges we had in the past and made us feel at ease that they would get the job done and they did! We closed on our house this week.😊Thank you again Matt and Brady's team for everything!!

Lorie Coffin

21:45 12 Jun 18

The most amazing team to work with! Thank you guys for everything. You have made our experience wonderful, fun and quick not to mention very professional. We will be definitely be recommending you guys to everyone we know.

Jason Strattard

21:22 11 Apr 18

Working with Brady and his team at American Mortgage Solutions was a very positive experience. They were very professional and accommodating to my situation and worked to find ways to get me approved. I highly recommend working with Brady and his team.

Nancy Pardue

16:08 11 Apr 18

The folks at American Mortgage Solutions were amazing! Very helpful and patient with all my questions. Very awesome home buying experience!

Allie

18:29 17 Aug 17

all around awesome experience! great people who love what they do and make the whole process easier on you! two thumbs up, I'd recommend them to anyone!

Finely Crafted Realty

11:55 21 Aug 14

Choosing a lender is an important step for any buyer in today's real estate market. You need a lender that will communicate well with all parties involved in the transaction, and keep things moving on schedule. Your lender can make all the difference in your deal going smoothly -- or not. The team at American Mortgage Solutions excels at this. Give them a call, you won't regret it.