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What is the difference between a jumbo mortgage and a reg. one?

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princess99
LIF Adult

Member since 5/05

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Name:
ME

What is the difference between a jumbo mortgage and a reg. one?

Just curious. We have a family member who is going to be applying for one and want to know the difference, also if they have good credit is that the only thing they look at to get approved? I totally forgot this stuff, we have our house for awhile now, and it has slipped my mind.
Thanks in advance!

Message edited 5/31/2006 9:23:23 AM.

Posted 5/31/06 8:19 AM
 
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charon54
My two boys!

Member since 5/05

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Name:
Rebecca

Re: What is thw difference between a jumbo mortgage and a reg. one?

Posted by princess99

Just curious. We have a family member who is going to be applying for one and want to know the difference, also if they have good credit is that the only thing they look at to get approved? I totally forgot this stuff, we have our house for awhile now, and it has slipped my mind.
Thanks in advance!



A jumbo mortgage is when your house is over a certain amount (I can't remember what it is in NY, it's somewhere in the 400K range I think).. Credit is not the only thing they look at. The other major thing they look it is your current financial status and the amount of money you owe. They figure out a debt to income ratio and you need to have little debt compared to what you bring in.

Posted 5/31/06 9:15 AM
 

princess99
LIF Adult

Member since 5/05

3944 total posts

Name:
ME

Re: What is thw difference between a jumbo mortgage and a reg. one?

Is it harder to get a jumbo mortgage then?
PS Thanks for answering!

Posted 5/31/06 9:21 AM
 

~Colleen~
my loves...

Member since 5/05

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Name:
guess

Re: What is the difference between a jumbo mortgage and a reg. one?

A jumbo mortgage is when you're borrowing more than $359,650 (as of 2005 - I think it's somewhere round $369k now)...and your interest rates are about a half point higher than regular mortgage interest rates.

I don't think it's harder to get -especially with good credit- most institutions are willing to lend most anyone, anything. Chat Icon

ETA: My error, it's up to $417k now and I think the points (depending on credit and other factors) range from 1/4-1/2 point higher than non-jumbo mortgages.

Message edited 5/31/2006 9:35:01 AM.

Posted 5/31/06 9:26 AM
 

Blu-ize
Plan B is Now Plan A

Member since 7/05

32475 total posts

Name:
Susan

Re: What is the difference between a jumbo mortgage and a reg. one?

Jumbo mortgages are mortgages where you finance more than $417,000 in NY. They usually carry higher interest rates but not always.

Posted 5/31/06 9:28 AM
 

BrunetteMom
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Member since 8/05

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Re: What is the difference between a jumbo mortgage and a reg. one?

The only difference is the total amount of the loan.

Posted 5/31/06 9:35 AM
 

princess99
LIF Adult

Member since 5/05

3944 total posts

Name:
ME

Re: What is the difference between a jumbo mortgage and a reg. one?

Thank you all for letting me know!

Posted 5/31/06 12:41 PM
 

Diana1215
Living on a prayer!!!

Member since 10/05

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Diana

Re: What is the difference between a jumbo mortgage and a reg. one?

When you get a jumbo mortgage you also have to pay PMI insurance that is why most mortgage brokers will split your loan into two parts and do a piggyback loan.

Posted 5/31/06 12:58 PM
 

BabyAvocado
Happy New Year

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Re: What is the difference between a jumbo mortgage and a reg. one?

The jumbo rate is now $417K.

Posted 5/31/06 2:04 PM
 

princess99
LIF Adult

Member since 5/05

3944 total posts

Name:
ME

Re: What is the difference between a jumbo mortgage and a reg. one?

Posted by Diana1215

When you get a jumbo mortgage you also have to pay PMI insurance that is why most mortgage brokers will split your loan into two parts and do a piggyback loan.



So is a Piggy back loan like 2 mortgages?

Posted 5/31/06 2:06 PM
 

patti08
Happy

Member since 5/05

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Name:
Patti

Re: What is the difference between a jumbo mortgage and a reg. one?

Where's DjPill? He'll know the right info fo this.

ETA: PMI doesn;t have to do with the loan being Jumbo, It is my understanding that you pay PMI if your loan is more than 80% of the value of the home.

Message edited 5/31/2006 2:17:23 PM.

Posted 5/31/06 2:15 PM
 

Blu-ize
Plan B is Now Plan A

Member since 7/05

32475 total posts

Name:
Susan

Re: What is the difference between a jumbo mortgage and a reg. one?

Posted by patti08

Where's DjPill? He'll know the right info fo this.

ETA: PMI doesn;t have to do with the loan being Jumbo, It is my understanding that you pay PMI if your loan is more than 80% of the value of the home.



that is correct. It's just based on the amount of the loan. $417,000 in NY is the limit of a non-jumbo loan. And, most likely the interest rate will be higher than a loan that is not jumbo. PMI does not factor in. As long as your debt to income ratios are low enough you should be able to qualify for this loan as any other loan.

Posted 5/31/06 2:24 PM
 

BrunetteMom
LIF Adult

Member since 8/05

1480 total posts

Name:

Re: What is the difference between a jumbo mortgage and a reg. one?

Posted by patti08

Where's DjPill? He'll know the right info fo this.

ETA: PMI doesn;t have to do with the loan being Jumbo, It is my understanding that you pay PMI if your loan is more than 80% of the value of the home.



Yup, that is correct.

Posted 5/31/06 2:32 PM
 

Diana1215
Living on a prayer!!!

Member since 10/05

29450 total posts

Name:
Diana

Re: What is the difference between a jumbo mortgage and a reg. one?

Posted by BrunetteMom

Posted by patti08


ETA: PMI doesn;t have to do with the loan being Jumbo, It is my understanding that you pay PMI if your loan is more than 80% of the value of the home.



Yup, that is correct.



So let me get this straight - if your house is 450K - and you decide to get a jumbo mortgage then you don't pay PMI insurance? I am a liitle confused. Mortgages are not my thing.

Posted 5/31/06 2:59 PM
 

BrunetteMom
LIF Adult

Member since 8/05

1480 total posts

Name:

Re: What is the difference between a jumbo mortgage and a reg. one?

Posted by Diana1215

Posted by BrunetteMom

Posted by patti08


ETA: PMI doesn;t have to do with the loan being Jumbo, It is my understanding that you pay PMI if your loan is more than 80% of the value of the home.



Yup, that is correct.



So let me get this straight - if your house is 450K - and you decide to get a jumbo mortgage then you don't pay PMI insurance? I am a liitle confused. Mortgages are not my thing.




let's say your house is 450k and you put down a depo of 20%.. Then no, you do not have to pay PMI.

Posted 5/31/06 3:02 PM
 

Diana1215
Living on a prayer!!!

Member since 10/05

29450 total posts

Name:
Diana

Re: What is the difference between a jumbo mortgage and a reg. one?

I understand now. It was explained to me (at the time when I got my mortgage) that anything over the amount (at the time it was 369K) we would have to pay the PMI insurance. I thought that was the reason for breaking the loan up into two parts. I didn't realize the 20% part.

Thanks for explaining.

Posted 5/31/06 3:04 PM
 

BrunetteMom
LIF Adult

Member since 8/05

1480 total posts

Name:

Re: What is the difference between a jumbo mortgage and a reg. one?

Posted by Diana1215

I understand now. It was explained to me (at the time when I got my mortgage) that anything over the amount (at the time it was 369K) we would have to pay the PMI insurance. I thought that was the reason for breaking the loan up into two parts. I didn't realize the 20% part.

Thanks for explaining.



That's perfectly understandable. It's easy to forget about factoring in the deposit being that it all gets lost somehow lol

Posted 5/31/06 3:06 PM
 

Diana1215
Living on a prayer!!!

Member since 10/05

29450 total posts

Name:
Diana

Re: What is the difference between a jumbo mortgage and a reg. one?

Posted by BrunetteMom

Posted by Diana1215

I understand now. It was explained to me (at the time when I got my mortgage) that anything over the amount (at the time it was 369K) we would have to pay the PMI insurance. I thought that was the reason for breaking the loan up into two parts. I didn't realize the 20% part.

Thanks for explaining.



That's perfectly understandable. It's easy to forget about factoring in the deposit being that it all gets lost somehow lol



Chat Icon That's for sure.

Posted 5/31/06 3:08 PM
 
 

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