If you are in the market for a luxury property, and don’t want to pay super jumbo or jumbo rate mortgage costs, then you may want to put more money down on your mortgage to qualify for a conforming loan or get two loans. Jumbo loans are much harder to obtain because of the new mortgage lending regulations. They have higher interest rates and points than conforming loans.

When you piggyback your loans, you can obtain a loan for the larger amount as long as it is within the conforming rate, and then pay a little more interest on your second Arizona mortgage. Then later after you have paid down the mortgages, you can refinance to one Arizona mortgage at a fixed rate. An ARM may also save you costs on your down payment and your interest rate. If you are not planning on keeping the home for a long time, then an ARM is a good option. Some ARM’s today are resetting at lower interest rates because the indexs they are tied to are very low right now.

Arizona Conforming Rates

The Arizona conforming loan rate is $417,000 for a single family home. The following loan limits apply for 1-4 units:

• 1-unit properties : $417,000
• 2-unit properties : $533,850
• 3-unit properties : $645,300
• 4-unit properties : $801,950

Talk to your Arizona mortgage broker to find a solution to obtaining a jumbo or super jumbo Arizona mortgage. Working with an Arizona mortgage broker makes the mortgage process much easier and saves you time. The mortgage broker can do all the comparison shopping of Arizona mortgage rates for you. Mortgage brokers work with a variety of lenders. They can pre-qualify you for your home purchase so you know exactly how much home you can afford, assist you with preparing the mortgage application and go over your loan documents with you before you sign them.

And Don’t Forget About Closing Costs

Ask your mortgage broker for an estimate on your closing costs if you are to obtain a jumbo mortgage vs. two piggyback conforming loans or one conforming loan with a large down payment. This way you can make an intelligent decision by comparing the costs. By law, you are entitled to a HUD-1 closing statement 24 hrs before you close on your transaction. This way, you will know upfront the true costs of your mortgage. You may also want to purchase a smaller more affordable home if you don’t have a large down payment, want to take out two loans or pay higher interest rates on a jumbo loan.

If you have any questions about this or if you have any questions you’d like us to answer on our podcast, you can email your questions to team@azmortgagebrothers.com or give us a call at (602) 535-2171. Be sure to ask us for a free quote on your next mortgage. We’ll personally work with you and help you through the whole process.

•••

Thanks for listening and reading the Mortgage Brothers Show. Let us know if you have any questions you’d like us to answer on this podcast. You can email your questions to Tom@AZMortgageBrothers.com or Eddie@AZMortgageBrothers.com.

Be sure to ask us for a free quote on your next mortgage. We’ll personally work with you and help you through the whole process.

Signature Home Loans LLC does not provide tax, legal, or accounting advice. This material has been prepared for informational purposes only. You should consult your own tax, legal, and accounting advisors before engaging in any transaction. Signature Home Loans NMLS 1007154, NMLS #210917 and 1618695. Equal housing lender.

BACK TO LIST