Charlotte Jumbo Mortgage Status Avoidance

With the release of the economic stimulus package, we all hoped for an increase in Charlotte’s Jumbo mortgage limits. However, since Charlotte’s luxury real estate market is holding well, we did not see any changes in Charlotte’s jumbo mortgage market. Currently a jumbo mortgage loan in the Charlotte area that is a mortgage loan amount over $417,000. Sometimes this is also referred to as the luxury mortgage loan.

The biggest question I hear is “Can we avoid the jumbo mortgage status in Charlotte?” Well, the answer to that is… “That depends!”

In the past, one way to avoid Charlotte’s Jumbo loan classification was to split the mortgage between a first and a second. Today however, many lenders are doing away with or cutting back on second mortgage loans, especially on a purchase. They want more of the security PMI can offer them. Yet there are still a few lenders that offer the 2nd mortgage and this can prevent your mortgage in Charlotte from being considered a luxury jumbo loan.

If you can not get a second mortgage at the time you purchase your home, you may consider putting just enough money down at closing to keep you under the Charlotte jumbo mortgage loan limits. After closing, you can look into options that would allow for a home equity line and draw the money back out that way. You would have to float the downpayment money for a short time, but with prime rate being so low, this could be a great alternative.

These are just a couple ideas of how luxury loan status in Charlotte can be avoided. With a free mortgage needs consultation, we can help determine if you have an opportunity to avoid the jumbo mortgage status in Charlotte. We will provide you with advice and guideance tailored to your own unique needs.

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