The Jumbo Mortgage Market (loan amounts over $510,400 for Texas) is shrinking as some mortgage lenders are facing a liquidity crunch.
It is the perfect storm for lenders as millions of homeowners are seeking forbearance from their current loan servicers after losing their jobs from coronavirus shutdowns. Investors who buy bundles of jumbo mortgages have currently exited the market.
The good news is that King Financial Group, Inc. does have Jumbo money available.
These are portfolio loans that are held by a particular investor and not sold. These loans are fixed for 3, 5 or 7 years and then adjust every year thereafter to the 1 Year CMT Index plus a margin of 3.00%. The current CMT index is sitting at .33%.
These are called ARM loans (Adjustable Rate Mortgages).
This is a great option for borrowers during the current uncertainty of the Jumbo market. If a borrower will be in the home for longer that the 3, 5, or 7 year fixed period, they can refinance into a fixed rate once the Jumbo market returns.
If you have any questions please fill out our Quick Quote form and an experienced mortgage professional will contact you shortly.