So, if you pay attention to this blog, you know that interest rates have popped up from their mind-boggling lows in early November. Mortgage Refinances still make a ton of sense for many, but some are waiting for a return to the glory of those heady days… and I believe they will continue to wait for a long long time. However, there are two types of borrowers that I believe will still benefit GREATLY from a refinance:
- Those who tried to refinance and couldn’t qualify due to an appraisal issue.
- Those who currently have a Jumbo mortgage and think that Jumbo rates haven’t improved enough to warrant starting the process.
- This second group has the potential to create the most savings BY FAR and here’s why: I have recently gained access to a low rate FIXED second mortgage that is creating a lot of added flexibility to what I have been able to offer.
There is a new regional lender that has aggressively entered the SECOND MORTGAGE market place, and is allowing a simultaneous close to a first loan, and they go to 90 LTV in many instances. This means for those who tried to refinance but the appraisal didn’t quite work now have the ability to fund a low rate fixed first simultaneous to a low rate fixed second one. This second mortgage has been locked by me as low as 4.99% (APR 5.251%), and this loan has NO Balloon Payment! This means that it acts exactly like a 30 year fixed first mortgage.
What this also allows current Jumbo loan holders to do is break their mortgage into two, 30 year fixed loans, capping their first at $417,000 (the conforming maximum), and simultaneously closing this second loan to make up the difference. This works extremely well for loans up to about $760k.
So, the best Jumbo Refinance in Portland is to get OUT of your Jumbo loan entirely. Access the super low rates of current non-jumbo mortgages and close with this low rate fixed second. My most recent client who qualified for this will save over $1200 per MONTH.
This works great with a refinance, but also works for a purchase, too.
Lets get started! Visit Portland Home Loan for more information.