Banks have continued to make it harder for homeowners looking to refinance their jumbo mortgage loan
Many banks have cut back on the risk that they are taking and this has made it much harder for homeowners to complete a jumbo mortgage refinancing option for their loans. The banks are afraid of homeowners defaulting on these larger loans and that is why they are afraid to do jumbo loan refinancing. Although it is hard to find a lender willing to complete a jumbo mortgage refinancing option on a loan, the good news is that there are still many banks that are willing and able to do jumbo loans.
One reason that jumbo mortgage refinancing has become so hard for many homeowners to do is because banks will no longer do stated income loans. A stated income loan was when someone who writes off their income and states what their income is, but does not show it on a tax return. Because of the economic crisis that the country went through many banks want to know and be 100% sure how much money a borrower makes and this is why they require personal tax returns to show for income. Many people looking for jumbo mortgage refinancing options own their own business and because of this it makes financial sense for them to write off lots of their expenses and show a small personal income. So this is why so many homeowners are struggling to get jumbo mortgage refinancing.
Another reason why jumbo mortgage refinancing has become so hard to do is because many banks have cut their jumbo mortgage refinancing programs. They have cut these programs because they are not able to sell these mortgages on the secondary mortgage markets.
Although there are few lenders that are offering jumbo mortgage refinancing programs there are still some banks that will do it. The requirements may be a little more tough than before but there are still many mortgage bankers that are able to get jumbo mortgage refinancing loans for their clients. These loans will require a much higher credit score than before, they will also have to have a much lower loan to value than they used to be able to offer. Finally, mortgage lenders will only be able to offer a homeowner an adjustable rate mortgage option and will not be able to offer them at a 15 year or 30 year fixed rate. But in the end, many homeowners looking for jumbo mortgage refinancing solutions are just happy to get into a much lower payment at the end of the day.