Super Jumbo Mortgages

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Loan Purpose Guidelines

Generally Speaking, lenders will allow borrowers to refinance or purchase a home utilizing a Super Jumbo mortgage, however refinance guidelines for these loans generally require lower LTVs than purchase money.

Borrowers wishing to "Cash Out" in a super jumbo mortgage refinance can expect limits not only to LTV but also to gross cash proceeds from the transaction. Cash out refinancing is a very popular use of Super Jumbo mortgages, as it allows individuals to "take profits" from appreciated real estate with minimal tax consequences. Some lenders do allow for unlimited cash out on Super Jumbo mortgage refinance transactions, however their number is declining in step with the broader mortgage markets.

Multiple Appraisals & Reviews

Due to the difficulty of setting market values for luxury homes, it is not unusual for super jumbo mortgage lenders to require 2 full appraisals at a minimum for properties valued at $1,500,000 or more. Should the subject property be unique, or comparable sales be difficult to obtain for the purpose of deriving value, additional field review appraisals, desk review appraisals, and broker price opinions may be ordered to substantiate the property's value. This is a significant concern for the lender as the asset in which they are taking a security interest must have a reasonable value to justify their risk and associated premiums.