Top Home Mortgage Lenders in 2008
Jumbo home mortgages are making a comeback! According to a recent report in LA Times, jumbo financing is yet again stepping in the home mortgage industry. These are financial institutions that have big-amount home loan mortgage rates. In the past years, such companies have almost been non-existing. But now, changes have been seen, especially at the fourth quarter of 2008.
At the top of the list is Bank of America, that has plans to launch a home mortgage program of loans amounting from $730,000 to $1.5 million. Its 30-year rates begin in the top five-percent range. It has a record originations of $1.4 billion.
According to National Mortgage News Data, CitiMortgage follows, with about $2.2 billion. At third spot is ING Bank which has $1.7 billion worth of originations.
Walls Fargo, also one of the jumbo home mortgage lenders, is currently offering 30-year jumbo home loan mortgages at 6.5 percent, lower than the 7.45 percent if offers on its conforming loans. It reduced its jumbo home mortgage loans by 68 percent since last quarter of 2007. This is the same case for Walls Fargo, which reduced 86 percent of its home mortgage lending by 86 percent.
Also included in the list are Navy Federal Credit Union and US Bank Mortgage. These two companies are the only ones which have increased jumbo home mortgage lending last year. Navy Federal’s originations doubled to nearly $412 million, while US Bank Mortgage increased its jumbo lending to around $346 million, or 28 percent of its originations.
As opposed to conforming mortgages, which amount to $729,750, jumbo home mortgages are those that have a higher amount. These types of loans usually have lower interest rates, so you might consider getting this if you are planning to get a home loan mortgage. However, it is important to understand as well that getting a jumbo home mortgage lending also poses a lot of risks. Practically speaking, a jumbo home mortgage also requires a jumbo source of income.
The amount you have to pay monthly is a fairly huge amount, compared to those that you need to pay when you are getting a conforming loan. Unless you have a secure monthly income that you know will continue throughout the duration of your loan, then you can get a jumbo home mortgage. If not, then you can opt for conforming loans. You just have to find the one that is more favorable to your situation.
