How Can I Avoid Paying Jumbo Mortgage Rates?

How to Avoid Jumbo Mortgage Rates?

There are ways to avoid paying jumbo mortgage rates. First of all, do what you can to raise your credit score. If there is little that you can do to raise your credit score, see what arrangements you can make with your creditors and be sure to correct inaccuracies and negative information on your credit report. Then, you also have the option of putting down a larger down payment. To avoid jumbo mortgage rates it is advised that you ensure that your loan amount agrees with conforming mortgage limits. This can be done by making a larger down payment when purchasing your home or paying down the loan.

What Else Can be Done”

Next, think about a piggyback loan. A piggyback mortgage is when you have a first mortgage that is below the conforming mortgage limit and a second mortgage that you establish at the same time as the first. What this does is that it allows you to take advantage of the lower conforming mortgage interest rates on the first mortgage and pay the normal, standard second mortgage rates on the second mortgage.

Another Method That May Help

Another way to avoid paying jumbo mortgage rates is to get an adjustable-rate mortgage. This can be an effective way for qualified borrowers because adjustable rate mortgages offer rates that are similar to 30-year conforming mortgages, but with amounts that can go as high as 2 million. However, you will need to make a down payment of 20 to 30 percent to quality and you will most likely pay higher interest rates once the initial rate ends.