The trend continues – Bay Area home prices are on the rise. The median price in October was $765,000, an increase of 10.9 percent from a year prior, according to the San Francisco Chronicle.

That number also was more than a 2 percent increase just from September of this year.

While this remains great news for sellers, some buyers may be feeling as though homes are inching out of their reach. Fortunately Guarantee Mortgage offers a variety of a competitive Home Mortgage options to fit your home buying needs.

Having served Bay Area homebuyers for decades, Guarantee Mortgage offers Jumbo Loans to help consumers reach their homeownership dreams even as prices continue to climb. A Jumbo Loan, also known as a non-conforming loan, portfolio loan, or non-agency loan, describes a mortgage loan exceeding the conforming loan limits set by Freddie Mac and Fannie Mae. In some areas, like the San Francisco Bay Area, the conforming loan limit varies by county and can range from $453,100 to $679,500 due to be located in a high cost area.

Essentially, if your desired loan amount exceeds set conforming limits above, a Jumbo Loan will cover the full amount needed for the Purchase or Refinance of your home.

Here are some of the characteristics of a Jumbo Loan.

  • Interest rates for a Jumbo mortgage tend to be slightly higher than those for a conforming loan, depending on market conditions.
  • Available in both fixed and adjustable rate terms. Fixed options include 30, 20 and 15-year terms. ARM options include a fixed period of 5, 7 or 10 years that roll to annual adjustable.
  • Jumbo Loans tend to have higher down payments and cash reserve requirements, depending on lender guidelines.
  • Financing is possible for loans of up to $5 million.
  • Delayed purchase financing options are available for homes purchased with cash who look to refinance and take some cash out later.
  • All of these products are available with zero points.

To find learn more about Jumbo Loan and if they fit your financing needs or if you just need general information, contact a Guarantee Mortgage Loan Advisor.