Jumbo Loan Calculator:
What is a Jumbo Loan Calculators?
A jumbo loan calculator is a program which combines an equation that takes a customers credit score and their total desired sum of borrowed money and can push out customized information based on whatever information they input. Because a Jumbo Loan is simply a loan which does not conform to the standards of Freddie Mac or Fannie Mae for government insurance, by being to large to handle according to their specifications. This means that a Jumbo Loan is any loan requiring more than the $417,000 ceiling that Freddie Mac and Fannie Mae have instituted. It should be noted that in certain high cost areas, this limit may raise to a sum of $625,000.
This calculator can then be used both by conforming loans and non conforming loans as the information inserted by the customer dictates whether the loan is a jumbo loan or a conforming loan. These calculators work on averages however, and should always be confirmed by a mortgage loan originator or lender.
How Does a Jumbo Loan Calculators Work?
A Jumbo Loan calculator can provide customized information based on the information a user provides, it also will make assumptions about down payment options, settlement costs, lender’s fees, mortgage insurance, as well as other costs. For example:
‘A user named Jason decides he wants to purchase a house with a market value of around 500,000 dollars. He knows his credit is high and as he doesn’t have the money readily available to pay out of his wallet he logs on to the internet and searches for a jumbo loan calculator. Once he finds one he inserts his information and the total sum he would like to borrow.’
It should be noted that some mortgage calculators ask for more information then others, so while still being careful with any information given out online, remember that the more information given the higher the chance of a accurate reading.
‘Jason’s calculator then provides the rate, the APR, and the estimated monthly payment; and gives them each in increments of how many years Jason could pay them back in. A thirty year fixed, a twenty year fixed, and a fifteen year fixed.’
Some calculators not only provide jumbo and conforming loans but can also provide information on FHA loans, VA loans, and Adjustable Rate Mortgages so it is worth knowing in advanced what kind of loan you are looking for before inputting information and creating a reliance on the information given which may be unintentionally misused.
As previously stated, jumbo loan calculators are an excellent tool for a first step basis. Another powerful tool before seeing a lender is pre qualifying for the loan you want, and then visiting that lender in question.