Best Jumbo Loan Lender in Columbia SC

Beginning in August 2007, Columbia South Carolina residents began to feel a credit squeeze that scared lenders away from the jumbo market. Jumbos gradually returned, but with tougher requirements. Clint Hammond of the Mortgage Network focus on finding Jumbo loans for those who qualify. Borrowers seeking a Jumbo loan should expect the following to qualify:

To make a down payment of at least 20 percent for a purchase (or have at least 20 percent equity in a refinance).

To document your income.

To get an adjustable-rate loan, because fixed-rate jumbos are relatively rare.

For your monthly mortgage payment to be no more than 38 percent of your income before taxes.

Borrowers who meet those qualifications find that today's rates are attractive. Jumbo mortgage loans aren't commodities like traditional loans. Most jumbos nowadays come from big banks that keep the loans on their books instead of selling them. These so-called "portfolio loans" exemplify old-fashioned lending, in which the bank makes money by charging higher interest rates on mortgages than they pay on their customers' deposits.

Interest rates on deposits are low nowadays, so banks can profit on jumbo mortgages even when they offer them at low rates. But rates paid on deposits will rise someday. So banks will push jumbo ARMs whose rates will rise when rates paid on deposits go up. The most popular jumbos are 5/1 ARMs, which have an introductory rate that lasts five years, then adjusts annually thereafter. Another popular option is the 7/1 ARM. When the adjustment period comes, most of today's jumbo ARMs will move in relation to the 1-year Libor, although some are indexed to the one-year Treasury.

Mortgage Network is a lender that offer attractive Jumbo Loan packages for Columbia SC, residents. In the last two years, the biggest change in jumbo lending has involved down payments. It's difficult to find any bank that will approve a jumbo loan with less than 20 percent down payment or equity.

If you are interested in Jumbo Loan financing, contact Clint Hammon of Mortgage Network today for a free consultation. 803-576-4450803-576-4450

NMLS# 71597

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