During the crash of the mortgage and housing industry starting in 2007 Jumbo Mortgage lenders quickly backed out, leaving many high end home-owners high and dry. Gone were the interest only jumbo mortgages of days past. In recent years, however, as jumbo mortgage rates have actually dropped below their smaller counterpart, the conventional mortgage – jumbo lenders have timidly begun to offer interest only jumbo rates again.
While guidelines are more restrictive than they were during the housing bubble, jumbo borrowers can once again enjoy the freedom of making interest only mortgage payments. Guidelines do require that you qualify at the fully amortized payment, and some lenders even require that borrowers qualify at what would be a 20 year loan once the interest only period expires *(usually the interest only period is 10 years).
In addition to the tighter qualifying for the payment Lenders also restrict the loan to value, usually to 65% since it is considered a Non-QM loan – the designation the government gives for non qualified mortgages.
Call us today for expert advice on your interest only mortgage.