Questions . . . Answers

what is a super jumbo loan?

"Super Jumbo Mortgage" is a mortgage loan exceeding $650,000. Many lenders use this term to define products offered above and beyond the average jumbo loan amount and have special programs aimed directly at these consumers. Programs range from "Interest Only" to Fixed Rate Mortgages.

FIXED RATE PROGRAMS

Many lenders offer fixed rate loans but not all lenders will loan above $1,000,000.  Some lenders even cap out at $650,000 or severely restrict loans over $650,000 to highly populated areas. 

The most popular super jumbo mortgage program is the "interest only loan", which allows you to pay interest only for a defined period of time which can mean substantially lower payments for larger loan amounts.

Are interest rates higher?

Mostly yes.  Super Jumbo loans tend to carry a higher rate than conforming loans but it also depends on your overall risk profile. 

Loans are priced based on risk, and layers of risk mean high interest rates.

Full doc loans are less risky that stated loans;

Verified assets are less risky that stated assets;

Higher credit scores are less risky than lower credit scores;

Owner occupied properties are less risky than second homes or investor loans.

How fragile is your dream ? . . . How solid is your coverage?

That's the pitch from Chubb and considering they insure real estate, jewelry, yachts, and art, it is a good one I think.

The Agent I recommend is Brad Disque. You can reach him at 404.995.1160, or send him an email about your property.

At the $1 million level, you'll be amazed at the coverage and astounded at the price.

And, be sure to tell him that Traci Gregory sent you