I understand the philadelphia Jumbo mortgage limit is 420K. Do these become conforming automatically?

Asked by Phillygoat, Wash West Thu Jun 19, 2008

I understand the philadelphia Jumbo mortgage limit is 420K. If I ended up taking out a jumbo mortgage for a little over this amount (CC townhouses we are looking at are /-500K) would the mortgage automatically become conforming (and going to a lower rate) if either the limit raises in future years, or we pay it down below the limit? Or, would this require doing a refinance for a few thousand dollars a few years down the line? Are there mortgage programs or typical riders that I should ask about to be incorporated in the origination process?

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Thu Jun 19, 2008
BEST ANSWER
Phillygoat,

If you take out a mortgage over $420k you will be considered a jumbo mortgage there for paying a higher rate. So you can always bring money to the table to make it $420k for instance if you bought a $450k home you could come to the table with the other 30k to still have a conforming loan amount. If they were to raise the limits in the future or if you paydown the mortgage to the conforming limit it will no automatically entitle you to conforming rates. Yes this would require you to refinance your current mortgage into a regular conforming mortgage. The typical riders you don't want are adjustable mortgages, pre-payment penalties, and balloon payments. I hope this helps let me know if you need any further assistance in obtaining a mortgage 1-800-839-6186x334

Andres Munar
Mortgage Specialist
1-800-839-6186x334
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Alina Kanevs…, , Cherry Hill, NJ
Tue Sep 16, 2008
Hello
My nameis Alina and i'm a local mortgage banker and there are a few different ways you can finance this type of trasaction without getting stuck with a higher jumbo rate however it all depends on you situation for your financing.( for example: if you can show your income or you are self employed and you have to go state income and verrified assets). I also have rates for jumbo mortgages that i get from wallstreet for clients who's credit and income fits the finnacing so they are able to obtain jumbo mortgages with rates as low as conforming mortgages. if you are interested in discussing this more i'd love to do so.
Thank you,

Alina Kanevsky
Lending Specialist

Mid Atlantic Capital
405 Kings Highway South
Cherry Hill, NJ, 08034
Phone: 856-429-2207
Toll Free: 800-232-5171 ext. 501
Fax: 856-429-4118
Cell: 267-474-8050

Email: akanevsky@midacap.com
Web Address: http://www.midacap.com
0 votes
Andy Raffle, , Yardley, PA
Mon Sep 15, 2008
The number you;re looking for is actually $417k since the extra $3k to get form $417 to $420 comes at a price that makes it not worthwhile. Why not take a small second mortgage to make up the difference so that you can do a Conforming first mortgage?
Web Reference:  http://www.AskAndyRaffle.com
0 votes
Alina Kanevs…, , Cherry Hill, NJ
Tue Jun 24, 2008
Hello,
My name is Alina, i'm a center city local and i work in the lending department for a bank locally. There is many ways to answer your question because whether the loan is jumbo or not can also depend on the loan program, whether its a bank or a portfolio loan and whther the loan goes through fannie may or fha financing. i would be happy to go over a number of options you would have available to you. you can contact me though email (akanevsky@midacap.com) or on my direct line at 267-474-8050.
thank you,
Alina kanevsky
0 votes
Nervous, Home Buyer, 02215
Thu Jun 19, 2008
Digital Credit Union (DCU) bank has jumbo rates that match the non-jumbo for 30 year fixd mortgages. Its an excellent program and DCU has been great to work with.
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