If you need to borrow 700K…Do you pay the lower rate up to the conforming amount, then a separate loan at a higher rate for the amount above that..or is it a jumbo loan at a higher rate for the whole loan amount..(assuming you qualify of course)???? or can you do either?
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It is a single loan for one amount. $700K is over the limit for FNMA. Loans are available at higher rates.
Rates are based on loan amount and equity. If you have less than 20% equity, mortgage insurance will be added as a separate payment, but will be removed at some point in the future. You get one loan for the whole amount.
One way to avoid mortg ins, is to have an 80% 1st, and then a 2nd for the balance, however it is harder to find 2nds today and some loan programs restrict it.
The current loan limits are $417,000 for one program and $546,250 in San Diego County ($417K in Riverside county, $625,500 in OC & LA county)
