Oklahoma Jumbo Financing Options: Recent data regarding median home values in Oklahoma City show an affordable $130,500. Throughout the greater metropolitan area, including Moore, Norman, Midwest City, and Edmond, the median value falls somewhat lower to $119,000. This is significantly higher compared to 10 years ago when the median home value in Oklahoma City was closer to $105,000.
The higher end homes are typically located in Nichols Hills as well as pockets near downtown OKC. In Nichols Hills, for example, the median home value is much greater. In these cases, typical FHA mortgage options will not work due to the lower loan amount caps.
When shopping for jumbo financing options in the Oklahoma City area, most mortgage companies offer loan programs that ask for a 20 percent down payment. Financing a home for $1 million would mean a down payment of $200,000, and a loan amount of $800,000. Some banks even ask for more, especially when the loan amount approaches $2 million.
Some borrowers would rather conserve cash liquidity and not make such a large down payment. For these home buyers, there are other options that are very competitive while offering low down payments. Some banks and credit unions simply make it a policy to shy away from higher end homes and instead focus on properties closer to the average price. They can do this by making their jumbo mortgage products less competitive through higher interest rates and down payment requirements.
Some new jumbo loan programs have recently surfaced in Oklahoma that requires only a down payment of only 5%. For a $1 million dollar home, the down payment amount is just $50,000 plus closing costs. The 95% jumbo mortgage programs are typically available in two different options – a standalone 95% loan, and a two loan option commonly referred to as a “piggyback” 80-15-5 loan.
With a combo loan option, there is a first mortgage at 80 percent of the sales price and a second lien which makes up the difference between the down payment and the first lien. The main purpose of the combo loan options like 80/15 (95% LTV) and 80/10 (90% LTV) is to avoid monthly mortgage insurance – PMI. A trained loan specialist can review the pro’s and con’s of each option and advise on what makes the best financial sense. Home buyers can read more about all the latest Jumbo purchase guidelines here.
As you compare your jumbo loan options you need to compare the total amounts paid each month, not counting any funds toward property taxes and insurance as those amounts are independent of your mortgage lender. In addition to the total monthly payments, you’ll also want to consider the term of your loans and closing costs. Most second liens will be amortized over 15 or 20 years while the first lien can be amortized over loan terms ranging from 5 to 30 years, in five-year increments. The shorter the loan term the higher the monthly payment but the benefit is the amount of long-term interest being saved.
To learn more about all the Jumbo home financing options available in Oklahoma, please contact Jumbo Mortgage Source by visiting www.JumboMortgageSource.com or calling ph: 800-962-0677
Serving buyers nationwide including OK: Oklahoma City, Tulsa, Norman, Broken Arrow, Lawton, Edmond, Moore, Midwest City, Enid, Stillwater, Muskogee, Bartlesville, Owasso, Shawnee, Ponca City, Ardmore