Jumbo Mortgage Refinance Options

Negative Amortization, Interest Only, Fixed Rate Payments

Jumbo refinancing now makes a lot of sense for many homeowners in high cost regions because jumbo refinance rates have dipped to the lowest point in thirty years. Countrywide mortgage lender provides online non-conforming refinance loans with unique rate options like interest only, negative amortization and fixed interest rate terms of 30 and 40 years. Jumbo refinancing now makes a lot of sense for many homeowners in high cost regions because jumbo mortgage rates have dipped to the lowest point in thirty years.

A jumbo loan is a loan is a non-conforming loan that is above the 2006 Fannie Mae and Freddie Mac conforming limit of $417,000 for the continental U.S. limit and $625,000 Alaska, Hawaii and U.S. Virgin Islands limit. According to NexTag, conforming loan limits are based on the current housing industry, the increase in home prices, and the rate at which homes are selling.

Jumbo loans are higher risk for the lender because it's a lot harder to sell high-priced homes quickly for the full price. To offset some of the risk, jumbo loan lenders generally prefer to have a 25% down payment, and the interest rate is usually .25% to .5% higher. Jumbo loans were originally used to finance luxury homes, but with rising housing costs, especially in areas like California and Florida with median home prices exceeding $500,000, there is more and more of a need for jumbo mortgage loans just to buy regular houses.

Jumbo loan options are similar to traditional loan programs. Borrowers have the option of traditional fixed rate payments or a variety of adjustable rate mortgages (ARMs). However, because of the loan amount, interest only loans and payment option ARMs (two of several hybrid ARMs) are increasingly popular ways for buyers to increase their purchase power and have more affordable house payments.

Payment option loans are known as such because the borrower generally gets four payment options: a minimum payment option (typically a payment option mortgage), an interest only option, a fully-amortizing payment option (full principal and interest payments) and an option that allows borrowers to pay off the mortgage loan early. Because the minimum payment doesn't even cover the full interest and the mortgage payment remains the same when interest rates rise, the payment option ARM is also considered a negative amortization (neg am) loan.

Should I refinance my negative amortization mortgage?
Very few home equity lenders will go behind a negative amortization 1st, so neg am can restrict your secondary loan options. Another problem with neg am loans is that it will eventually reset to a fully-amortizing loan, which can result in a huge hike in your monthly house payments. So, depending upon the credit score you may need to refinance your negative amortization 1st before your loan resets and your payments increase or if you're considering a second mortgage later on.

Additional Loan Options * A-D Credit

For Free advice or a Free quote from a loan officer:

Fixed Rate Mortgage

Purchase Loan

Home Refinance

Adjustable Rate

2nd Mortgage

Refinance ARM

Bad Credit Mortgage

Purchase or Refinancing Loan

Poor Credit 2nd Mortgage

2nd Mortgage

Debt Consolidation

Home Improvements



Home | Site Disclaimers | Contact | Apply Now

Refinance Loans: Home Refinancing | Refinance Home Equity Loans

Home Finance: Home Purchase Loans | 2nd Home Loans | 100% Financing | FHA Home Purchase Loans | VA Mortgage | No Closing Cost Mortgage | 100 Mortgage | New Home Loans
No Down-Payment Mortgage | VA Home Loans | Home Loan Rates | USDA Loans | HUD Loans | Hard Money Loans for Lots and Land | Rehab Loans

Equity Loans: Second Mortgage | Home Equity Lines | Fixed Equity Home Loan |
Home Improvement Loans | 125% Mortgage | Bad Credit Equity Loans | Bad Credit Loan

Preferred Loan Type
Property Value
Loan Purpose
Select State

Jumbo Home Loans
Second Home Loan Financing
Manufactured Vs Modular Home Loans
VA Home Loan Financing to 100%
Sub Prime Mortgage Tips
No Money Down Home Loan Tips
New Home Loans
Sub-Prime Home Loans