How To Qualify For A Jumbo Loan in 2020

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welcome to the mortgage update with Dan

Frio for over 10 years dan has been

helping am 1160 listeners with so many

companies to choose from and hundreds of

loan options the mortgage process can be

confusing and costly be sure to listen

each day for Dan and learn the

difference between FHA VA and

conventional loans you'll also learn how

to negotiate lower interest rates and

fees as well as steps to buying your

first home and whether refinancing makes

sense stay tuned to find out why

Chicago's top realtors are choosing dan

Frio to the mortgage update with the and

free oh and I of course am tan frío uh

you listen to me every day hopefully on

AM 1160 you hear my commercials you hear

me live with Marc elfstrom every day at

5:20 when you're driving home if you

would please Google me it's Dan da n

free o Fri o and it should show you

everything about me my LinkedIn my

Facebook's everything you can have I'm a

mortgage broker in the Chicagoland area

that's why it's called the mortgage

update with the n free Oh today we're

going to talk about jumbo mortgages

those are big mortgages so if you're

looking to buy a seven hundred eight

hundred nine hundred thousand dollar

home where do you go and up until now

most of the people out there if you look

for that type of mortgage you're

basically forced because of interest

rates to go to the big banks the problem

with that is it's not only their rates

well they would they have better rates

than most brokerages and mortgage

bankers and I'll explain that in a

little more detail but the fees are

would kill you so a lot of people get

wowed over the interest rate but what

they do ignore is the fees and we're

gonna go over that in the later section

of this show but let me go over what a

jumbo mortgage is and if you've been out

there or if you're listening and you've

you've reached out or try to get a jumbo

mortgage in the past you probably will

feel the frustrations or you can kind of

relate to a lot of things that I'm gonna

go through here so hopefully this is

kind of giving you a little deja vu of

you know what then you're right I went

through that and I did that and that you

know here's you know here's how much I

had to put down and think you know other

things so what is a jumbo mortgage let

me explain

what that is there's what's called

conventional financing that is loans

that you do through Fannie Mae Freddie

Mac and and I won't go into great

details though there I'll do that on

another show and also what I did is I

posted all the other radio shows on

podcasts so if you want to look me up on

iTunes or just go to podcasts you know

look up the podcast every show that we

have is on there and I have it explained

out in the bottom of that section what

this show is so you might want to go

back and look at you know what a

conventional loan is but in 2019

conventional mortgages that's the

standard mortgage that a lot of people

get or most people get the loan limit is

four hundred eighty four thousand three

hundred and fifty dollars so if you need

one dollar more what do you do well that

in essence is considered a jumbo

mortgage so a conventional loan is a

loan up to four hundred eighty four

thousand three hundred fifty dollars and

anything more than that is is a jumbo so

basically that is I'll just define it at

that they're they're harder to get

they're harder to qualify the rates are

normally higher and because of there's

there's more of a risk on those loans

okay so now let's go to I'm gonna break

it down to what I'll call loan to values

and I'll explain that interest rates and

fees so we're gonna break it all down

for you on if you're if you're in need

of a jumbo loan where are you going to

go to get the most leverage of your

money at the best rate with the lowest

fees so the normal jumbo product or

normal jumbo loan you're going to need

20% down so I'd I actually googled this

just to make sure that all my data was

correct do me a favor if you're looking

for a jumbo mortgage put in your credit

score and it's in you know hopefully

you're in the 700s 800s but put it in

and then put that you only want to put

down 10% or 15% this will validate what

I'm telling you in

almost all the cases when you're going

to the big banks you need 20% down let

me give me a get let me give you some

good news the programs were coming out

with in 2019 are gonna solve a lot of

these issues for you we're going to go

to 90% financing so let me explain what

I mean by LTVs and the down payments and

the financing so you have a seven

hundred thousand dollar home that you

want to purchase when I talk about

loan-to-value we're talking about the

loan amount to the value so the value in

that essence or in that scenario is

seven hundred thousand okay so in most

cases up until now you need 20% of a

down payment to purchase that home so

20% of seventy seven hundred thousand is

a hundred and forty thousand dollars so

you to buy that seven hundred thousand

dollar home you need a hundred forty

thousand my program coming in starting

January 1st 10% down so in essence we're

going to save you or don't say save you

the need of the amount of money that

you're gonna need to bring to closing is

going to be seventy thousand less so I

can go to ninety percent when I ask when

I refer to loan to value

I will go 90 percent of the home's value

deduct that 90 from 100 that's how much

the complete loan is your you know one

hundred percent financing of seven

hundred thousand is seven hundred

thousand so when I talk a loan to value

it's the percentage of that value so I

hope I'm not confusing you just take the

loan to value times the the purchase

price I'm probably getting you away

confuse because I'm confusing myself so

you got a seven hundred thousand dollar

home I can get you into that that home

with ten percent down okay even 15

percent down the more however you put

down the better the rates so that

program will go up to I'm going to check

my notes here real quick that program

will go up to 1.5 million dollars okay

so now the next best thing behind that

is I can go to 85 percent loan to value

up to 2.5 million so these two programs

if you

we're looking for a jumbo loan and

there's there's there's people out there

looking for jumbo products you this this

is gonna click for you because what I'm

gonna show you is you're gonna need less

money down you're going to get better

rates and I'm gonna show you in a second

the fee structure on these programs so

okay so now we talked loan-to-value

again I can go to 90% where your average

banks are going only to 80% so that's

that part of it

alright so now the interest rates okay

so again you can't if you're looking for

a jumbo loan right now you don't have

the access to the 90 percents but I just

ran a rate calculator through all the

lenders I have and when I am I'm a

mortgage broker in the Chicagoland area

so hopefully you've heard me if you're

listening to am 1160 right now you've

heard me several times today alone with

my commercials and I was live with

Marcus all elfstrom at 5:20 if you were

driving home so today it's December 12th

2018 you might be hearing this on a

podcast or you might be hearing this on

a delayed show or we might have filled

in a gap for another show but but

today's date that I'm doing this live is

December 12 2018 my fixed rate for a

jumbo loan with a 780 credit score and

20 percent down so I can compare it to

the banks is 4.6 25 with an APR of 4.8

95 the fees in that program are an

appraisal and title fee it comes to 1140

dollars okay the criteria that I used

for that loan is a four hundred eighty

five thousand dollar loan and a six

hundred and seven thousand dollar I'm

sorry four hundred eighty five thousand

dollar loan that's why I did say with a

six hundred and seven thousand dollar

value okay so that's the parameters

behind that loan so let's let's rephrase


I used a seven eighty credit score four

hundred eighty five thousand dollar loan

six hundred and seven thousand dollar

the value of that property the rate

30-year fixed for point six two five APR

4 point 895

total cost eleven hundred and forty

dollars okay I ran that scenario that

exact scenario through the website and I

went to I found Wells Fargo and I hate

to point them out but that was one of

the first ads that came up when you do a

Google search you always see that the

first companies come up as ads and and

things so I just jumped on to theirs

so what I came out with theirs is they

came up with a rate of four point six to

five I didn't run the APR the costs now

this is what kind of floored me the cost

for them on that loan and again I did a

web search I went through a Wells Fargo

comm you plug in your criteria you hit

enter and it pops up the fees or the

costs involved to get that loan through

them ten thousand five hundred sixty six

dollars so in this case I could save you

about nine thousand dollars in fees

you're gonna say Dan well the rates

lower the rates lower by one point one

point two it's not gonna make that big

of a difference it's going to take you

20-30 years to recoup those fees so that

is kind of the the breakdown of what I

we we I hardly ever get jumbo loans and

I I kind of reached out there and I'm

asking you know why so I had several

friends this year call me up and they

wanted to give me they wanted me to give

them quotes cuz they wanted to use me I

gave them quotes and they came they

called me back in there like dan you're

not even in the ballpark and I was like

what do you mean they're like you know

we went to here we went there their rate

is a half three quarters of a percent

lower than yours that's huge when you're

talking about a you know five six

hundred thousand dollar loan so so what

I did my search this year in 2018 was to

be able to offer my friends family you

listeners out there I want to get into

that jumbo market to help you so you

don't have to pay the ten thousand

dollars in fees to the big banks how are

they able to pay all these penalties and

you I'll pick on the Wells Fargo's

they're paying hundreds of millions if


dollars and penalties and in fines every

year but if you look at their bottom


they're always producing a profit how

how can you pay a billion dollars and

still you still get a profit at the end

of the year well if you're if you're

charging clients that are looking for

lending ten thousand dollars to get a

loan that's how your that's how you're

making a profit that's how you're buying

stadiums that's how you have race cars

that's how you put the rocket on the

moon so so that's that's the jumbo piece

I'm gonna go over a little more details

about that in the next segment and then

we are also going to talk about credit

assistance so stay tuned

be right back I'm gonna talk you

everything about credit credit scores

and credit repair god bless


hey welcome back to the mortgage update

with Dan Frio thanks for coming back

right this segment here I have a sponsor

of the show credit scores and more calm

and I have a there's a YouTube I have a

YouTube's of credit scoring systems and

credit repair and other pieces of

credits of credit that's a hot topic

right now and most people if you get it

you understand that your credit score is

huge and it's huge when it comes to car

loans credit cards you getting a job or

not they your employer most likely is

going to pull your credit I mean your

credit is absolutely horrible you might

not get that job if you want to buy a

home your dream is to buy a home your

credit score has to be certain credit in

credit ranges or you're not getting a

basically if your X score one point less

you're not getting a mortgage so credit

scores and more I'm going to go over

this website in some different areas in

in the the kind of a step through of the

process of this system so when you go to

if you would write it down if you're

driving you know just this makes sense

credit scores so you want to find out

your credit scores and more what else

does this system do so we're gonna go

through that briefly okay so let's let's

talk about credit scores in kind of

detail so there's two different credit

scoring I'll say systems or algorithms

or what happens is when people call me

and I get a lot of phone calls for

people just needing credit help I the

first thing I do is say or ask what's

your credit score and they tell me the

problem with that is they don't know

when I ask them what score is that the

99 percent the time they don't know okay

so a lot of people will use the free

systems okay so when you go to credit

scores and more you can do this as well

it's step number

you're gonna pull up and you're gonna

put in your information it's a hundred

percent free it'll take you two minutes

it's going to give you a credit score

with that credit scores it's it's

actually a score created by TransUnion

and it's called a vantage score now the

vantage score there's two I'll go over

two pieces or subcategories of credit

scores there's a vantage score and a

FICO score okay known lenders that I

know of and know lenders that I can

Google search use the advantage score so

the advantage score the way I look at it

is it's a it's basically a training tool

it'll give you a number and then in that

system that gives you a free system you

can kind of dig down and look at your

credit and you know kind of peruse

through all the stuff that you have go

go in there and use that system for some


it'll give you advice on what you can do

it'll also say if you pay down this

account to this it'll do this if you

increase your credit line to this it'll

can do this it does a lot of things for

you but however it's not giving you the

credit score that your lender for your

car your mortgage your insurance it's

not giving you the scores that that

company will be using okay so it's it's

a good educational tool I would highly

suggest you use it you sign up for it

it's free it'll give you monitoring

it'll do a lot of things for you for

free and it's a great training tool now

step two this is for those that really

really want to know their credit scores

that the lenders are going to use the

credit card company is going to use the

insurance company is going to use your

employer probably will pull this if

you're interviewing for a job I can

guarantee you the mortgage company when

you call me for a mortgage application

and you're going to call me if you need

a mortgage please we will like it you

could pull this credit score I can pull

it that later that day we will get

identically the same score almost 99.9

percent of the time so it when you go to

credit scores and more it's going to be

step two okay the cool thing about this

website is it's going to get you I would

highly suggest you choose

all three credit repositories what I

mean by that is you've heard of all of

them but you probably might not

understand what I'm talking about

there's TransUnion there's Equifax and

there's Experian however did you know

and if you listen to if you listen to my

shows you check out my YouTube channels

you listen to me on mark elfstrom you

know these things but for those who

missed me on all of that information or

all of those areas there is multiple

scores under each one of these

subcategories so let's go with

TransUnion TransUnion has a series for a

series 8 and a series 9 that you didn't

know that

so under TransUnion series 4 there is an

auto score a credit card score a

mortgage score and an insurance score so

you have under TransUnion model for 4


TransUnion model 8 you still have those

same subcategories credit cards

mortgages auto and insurance you have

four more there then you go to series 9

it has 3 so you have 4 8 9 10 11

transunion credit scores again if you'd

listened to me in the past you know

these things if you if you're new to

this you're new to the program you're

new to you know you want to get your

credit fixed or you're listening to this

on a podcast but you didn't know that so

by spending a little bit of money you

get your credit and you get all of your

scores believe it or not three out of

five people have misinformation on their

credit report I have a current client

and you you've might and I'm still

working on her because it's it's it's a

work in progress she has four accounts

on her credit report that are not hers

the weird thing is whoever's using those

cards are actually paying on those

credit cards and I've never never heard

of that because if somebody's gonna use

credit or credit fraud or identity fraud

they're gonna go out there and they're

gonna buy things and they're not gonna

pay it so

the person that's doing this to her

there can be multiple people they've

actually created cards and hurt with her

information and they're paying the

payments so that one that one's got me

so but again go through that it's going

to be on the credit scores and more

website it's going to be step two it

actually says get your true credit

report or reports and again there's

TransUnion Equifax and Experian under

each one of those are two sub sub

categories and then under those sub

categories are going to be four

different scores so you're gonna have

eight to eleven credit scores on every

one of those so just add that up you're

gonna have over 30 credit scores so when

I ask you you know what is your credit

score and you say 620 and I then I say

what score is that you're gonna say Dan

that's the middle score of my you know

all my repositories and that is the

mortgage score god bless you you just

did you hit it out of the park on that


so again credit scores and more calm you

can do step one which is a free

monitoring free training tool for you

step two is getting your real true true

credit report that everybody's going to

use all your lenders are going to use

now you have some issues you need some

help there's - there's gonna be a step

three and a step four all right step

three is going to get you some help at a

reasonably priced program okay not

saying it's any better or any worse than

the other then step four step four is

basically a law firm that we're having

you reach out to to really help with

some major major problems multiple

bankruptcies multiple multiple

information on there that's that's

inaccurate credit fraud a whole bunch of

stuff that really is gonna take a while

to fix you really really want to get you

want to get you get what you pay for so

we want to reach out and get a solid

solid company for that however if you

just have some dings on there you want

to try to see if you can get some things

removed something settled you don't need

to pay excessive fees to do that and a

lot of these you know they range that

when they sign you up they're gonna

range from you know a hundred to two

hundred dollars for a sign up and then


to even a hundred 150 $200 a month so

again what I'm saying is step three is a

more affordable process than the step

four so that's that's basically the the

whole gist of that so again credit

scores and more calm step one is a

monitoring system training tool step two

is the actual credit report that they're

all lenders credit card companies

insurance companies even your employer

would would most likely pull step three

is an affordable credit repair company

and please make sure you go through the

websites because there's a lot of

discounts by going through these sites

and clicking through and applying on the

sites and then step four is a law firm

that's gonna really dig in and really

it's you know you've you've dug yourself

a big hole they're gonna help you start

filling in that hole so that's it for

now that's that's today's show I hope

you got a lot out of it the jumbo

programs it's not gonna fit for everyone

but if you're in the market for a jumbo

mortgage in 2019 please PLEASE even if

you've called me in the past give me a

shot on those because I can I can

promise you we're gonna get you a rate

very comparable if not better than the

big banks and your fees they're going to

be thousands and thousands and thousands

less all the information I gave you

today you can google it just google it

if you think that I am falsifying any

information like the Wells Fargo's the

rates and the fees and things like that

just google it but in jumbo mortgage the

first thing comes up that's probably

gonna be in the top three it's gonna be

Wells Fargo I'm not picking on them

that's the one I ran put in the

information and should match exactly

what I just told you so I want to thank

you for tuning in tonight I again I'm

Dan Frio of the mortgage update you hear

me daily if you want to reach out to me

personally and I answer the phone

probably 99% of the time if I don't

you're gonna be transferred over to me

after you after some of the answers you

can reach me at six three zero three

three eight eleven sixty you're gonna

see a pattern here

you're listening to eleven sixty AM

radio right now so six three oh three

three eight eleven sixty check me out on

the web

1160 mortgage.com and then google search

me so you can find my YouTube channels

my LinkedIn and my Facebook so god bless

you thank you so much for listening

tonight please make sure to tune in

tomorrow take care have a good evening


you've been listening to the mortgage

update with Dan Frio for over 10 years

dan has been helping AM 1160 listeners

with so many companies to choose from

and hundreds of loan options the

mortgage process can be confusing and

costly be sure to listen each day for

Dan and learn the difference between FHA

VA and conventional loans you'll also

learn how to negotiate lower interest

rates and fees as well as steps to

buying your first home and whether

refinancing makes sense