Home Buying in Philadelphia>Question Details

megancb, Home Buyer in Philadelphia, PA

Jumbo mortgage question

Asked by megancb, Philadelphia, PA Sun Aug 18, 2013

If the purchase price of a home is greater than $420K, but down payment brings the mortgage amount below $420K, one would not need a jumbo mortgage, correct?

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Answers

11
Bill Cook’s answer
That is correct.
Below $417,000 will be a conforming loan.

The tricky part is, lately jumbo rates have been almost the same as conforming. So comparing rates and fees with different lenders may be smart.
Also, ask yourself is it better to use that extra money you will put down somewhere else, like into upgrading the kitchen or bathroom in the home you will buy?
It is not always cut & dry as every borrower's needs and homes are different.

good luck
0 votes Thank Flag Link Mon Aug 19, 2013
Why don't you ask your lender they are the ones who are lending the money and may have a product that can save you interest or PMI. I know BOA have a some for medical professionals.

Philip J. Cunningham Sr.
V.I.P. Realty Corporation
7942 Bustleton Ave
Philadelphia, PA 19152
215-725-5700X49 cell 267-934-1971
philcunningham2004@yahoo.com
Web Reference: http://www.GreatPaRE.com
0 votes Thank Flag Link Mon Aug 19, 2013
Hi Megan,

That is correct. Purchase price can be higher, but for a conventional mortgage, the loan amount cannot exceed $417K.

Good Luck with your home purchase. If you have any other real estate related questions, please feel free to call me directly. I'm available to assist you in meeting your goals.

Have a great day. Looking forward to speaking with you soon.

All the best,
Larry Lichtman
Realtor, Certified Negotiation Expert
Your Real Estate Resource For Life
CELL/Text: (267) 254-7994

Liberty Real Estate Associates
924 Arch Street
Philadelphia, PA 19107
Office: (215) 625-4725
0 votes Thank Flag Link Sun Aug 18, 2013
You would not need a jumbo mortgage at that point. The loan limit is 417k
0 votes Thank Flag Link Sun Aug 18, 2013
The correct conventional loan limit is $417,000 for the loan so anything above that is a jumbo loan. If change to a jumbo loan it can affect your maximum loan to value as well. We have a 90% LTV jumbo loan with no mortgage insurance if you are interested. Feel free to call my office at 610-906-3319.

John R. Thomas
Certified Mortgage Planner - NMLS 38783
Primary Residential Mortgage, Inc.
610-906-3319
0 votes Thank Flag Link Sun Aug 18, 2013
That's correct. The important thing is the amount of the loan. $417k is the amount for jumbo loans in the Philadelphia metro
0 votes Thank Flag Link Sun Aug 18, 2013
Yes,You are correct.The below answers sum it up for you.
I would like to represent you in the purchase to make sure your interests are protected and would love to send you letters from previous clients relating how I conduct myself.
Please contact me by the means below.
Don Sherman
Century21 Advantage Gold
Cellphone-267-716-8228
Email-realtor94@gmail.com
0 votes Thank Flag Link Sun Aug 18, 2013
Correct. I do want to say that there are some loan products, depending on the downpayment and credit scores, you can get the same rates on loan amounts over $417,000. Really depends on your particular situation and aspects of your loan.

I would suggest you speak with a Loan Officer who can provide you with a variety of options so you can determine what is the best way to go. Good luck!

If my response was helpful, consider clicking BEST ANSWER!

Javier Meneses
Senior Loan Officer
NMLS #23130
STERLING NATIONAL BANK
310 Crossways Park Drive
Woodbury, NY 11797
jmeneses@snb.com
(516) 606-9648 Cell
(516) 740-4478 Office
(516) 918-5383 Fax
0 votes Thank Flag Link Sun Aug 18, 2013
That is correct.

If you get a loan at $417,000, you'll have "normal" rates. From $417,001 to $420,000, that is called jumbo conforming and is slightly higher. After $420, that's real jumbo!

Good luck,

Fred
0 votes Thank Flag Link Sun Aug 18, 2013
That is correct. The mortgage product is based off the loan amount. Please call me or email me. I can help you get prequalified for a mortgage and I have the best Jumbo programs available.

Kristin Calvaresi - 877-292-3890 (goes to me cell phone) kriscalvaresi@aol.com
0 votes Thank Flag Link Sun Aug 18, 2013
Hello Megan,

That is correct. It is also possible to do a 80% conventional first mortgage at $417,000 and a second mortgage to 90% of the purchase price and it is still not a jumbo

Regards,
Alan Openshaw
Cornerstone Lending Inc
Southampton Pa 18966
215 953 0800
cell 267 992 7276
VOTED BEST IN BUCKS 2010 & 2012
NMLS ID 143960
0 votes Thank Flag Link Sun Aug 18, 2013
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