We specialize in Jumbo and super jumbo mortgage loans. A lot of our clients are high net worth individuals who are looking for advice and guidance on obtaining jumbo home loans. We take a more consultative approach then most of our competition because as planners we believe that the jumbo mortgage is a very powerful financial tool which, when properly structured, can save our clients hundreds of thousands of dollars over the life times of their jumbo loans.

As an example, the best jumbo mortgage rate on the wrong jumbo program can cost hundreds of thousands of dollars. Imagine you are making three million dollars a year and looking to purchase a two million dollar apartment. You’re assuming you want a super jumbo 30-year fixed mortgage and plan to put down $1.2 million on an $800,000 loan. With a jumbo rate of 6%, which is the going rate for this type of mortgage, your monthly payment would be $4,796.40. You might accept this loan, never realizing it’s actually the wrong jumbo mortgage loan for you.

Taking a long-term approach toward your mortgage, we would advise you to take a jumbo mortgage for $1,000,000. This gives you the full tax advantage of the mortgage and keeps an extra $200k in the market. We would also advise that you take a 15-year jumbo mortgage, since the rate is typically about 1.25% lower. If the current 15-year jumbo rate is 4.75%, your payment on a million dollar loan is $7,778.32. Naturally, this is a much bigger payment than the 30-year fixed loan would require. However, consider the interest saved over the life of the loan. In the first scenario ($800,000 jumbo loan, 30-year fixed mortgage) your total payoff will be $1,726,560 ($4,796 x 360). With our recommendation, the payoff will be $1,400,097.60 ($7,778.32 x 180), saving $326,462.40. And you kept an extra $200k in the market.

Don’t make this kind of mistake. It’s just one example of how the wrong jumbo mortgage program could cost you hundreds of thousands of dollars. Ensure your mortgage is properly structured by contacting us today for a free strategic financial mortgage review.