There are many people who own second homes in the Captiva Island area. The area was named in the “Top 10” best places to own a second home. In many cases, these homeowners have non-traditional or “jumbo” mortgages that require special processing if they plan to obtain a loan to purchase a home or to refinance their existing home. Before you purchase your dream second home, it is important to understand how a jumbo mortgage works.
What is a jumbo mortgage?
Jumbo mortgage loans in the Captiva Island area are classified as loans in excess of $548,250. It is important to note this figure is a loan amount and not the value of a property. In most cases, a jumbo mortgage requires a private source of funding because many banks do not offer these loans. This is largely because the loans fall outside of the guidelines laid out for government backing. Many jumbo mortgage providers offer the consumer the option of using an adjustable rate mortgage to allow them to qualify and to keep monthly payments lower.
Jumbo purchase mortgage
In most cases, a second home purchase will require the borrower to put down a minimum of 10 percent of the purchase price of the home. In some cases, this will actually help a potential buyer to save money since they will not have to worry about personal mortgage insurance. Most lenders who offer jumbo purchase mortgage loans will have strict income and expense guidelines that must be adhered to.
Jumbo refinance mortgage
Captiva Island residents who are currently paying a mortgage may benefit from currently low interest rates. In many cases, you can save thousands of dollars over the life of your loan by refinancing. Before you make a decision to refinance however, carefully review your current loan documents for pre-payment penalties that may make refinancing more of a burden than a savings.
Whether you are considering a first time Captiva Island mortgage or you are interested in refinancing an existing jumbo mortgage, Core Mortgage Financial can help. We offer many jumbo mortgage programs through the relationships we have made with our investors and lenders. Call today and let us help you secure your Captiva Island purchase or refinance loan.
This blog is for informational purposes only. The blog content is our opinion, please contact our office with any questions. Rates, Programs, Guidelines are subject to change without notice. We are not affiliated with any government agencies.