Phoenix Jumbo Mortgage Loans

Phoenix Jumbo Mortgage Loan: Highlights

In Phoenix, a jumbo loan is considered any loan that is over $417,000 – which is known as the “conforming” loan limit. Whereas there used to be hundreds or thousands of different lenders who offered Phoenix jumbo mortgage loans, there are now only a small handful of lenders who can help you finance your home for loans over the conforming loan limit.

When applying for a jumbo loan in Phoenix, it is important to first know that you will be required to document everything – from income to assets to credit score. There isn’t such a thing as a “stated” loan anymore in teh jumbo market, lenders are up front about requiring more (and more) documentation.

Also, as a general rule, many of the lenders who lend money for jumbo loans will have a high limit that they will lend money up to – and each lender generally has a different high limit. Some lenders will lend up to $2 million for a Phoenix jumbo loan and others may go to $3 or even $4 million. It has been our experience that on average, lenders will lend up to about $2 million for the Phoenix area.

Interest Rates on Phoenix Jumbo Mortgage Loans: What Are They?

Because jumbo mortgages are bought and sold by private investors (and not usually Government Sponsored Agencies like Fannie Mae or Freddie Mac) they carry a “market” interest rate. And typically that market interest rate is higher than conforming mortgages that are bought by Fannie and Freddie.

In Phoenix, it is also common for a lender to “portfolio” a jumbo loan – which means that the bank will not only originate the loan, but also service it – which means they will collect and process your monthly mortgage payment.
Generally speaking, for jumbo mortgages in Phoenix, you can expect that the interest rates are going to be between about 1/4% – 1% higher than those loans on conforming-under-$417,000 loan amounts.

Because there is not one set interest rate for the mortgage loan market, it is wise to shop around to see if you can get the best deal available.

If you live in Phoenix and are thinking about a jumbo mortgage loan, call us – we are local and we are jumbo mortgage loan experts.