What Is A Jumbo Loan? – Complete Information for You

What Is A Jumbo Loan? – Jumbo Loan is a loan which is known as a jumbo mortgage, whose amount exceeds the conforming loan limits set by the Federal Housing Finance Agency. It is not like the conventional mortgages as it is not eligible to buy, guaranteed or securitized by Fannie Mae or Freddie Mac.

On a conventional loan, you as a borrower will be limited to borrowing. This threshold limit is called the conforming loan limit. This amount varies between about $400,000 and $700,000 depending on where you live and some other factors.

What Is A Jumbo Loan

What Is A Jumbo Loan

Home prices have shot up in some areas of U.S. so the buyers need jumbo loans to finance. It is the one-away loan to buy a luxury home or a high priced home.

If you are a qualified borrower, you can get an amount of $2 million. You don’t need to get a smaller amount of loans to fulfill your financial requirement. This single loan can fulfill your requirements as long as you qualify for the same.

Jumbo Mortgage loan rates?

Previously the interest rate of mortgage loans was higher as compared to the conventional mortgage rates. Recently, the gap between jumbo rates has decreased and Jumbo loans have become more affordable. The lenders offer this loan from 15 to 30 year period for fixed as well as adjustable rates.

There are a large number of reasons you need a jumbo loan the rates have not risen with conventional loan mortgage rates. So it is a great time to get the advantage of Jumbo mortgage financing.

Why do you need to pick a Jumbo mortgage?

A Jumbo mortgage allows the borrower to go outside the Fannie and Freddie limits. Although you can enjoy the competitive interest rate and finance the home of your choice without being restricted by the dollar limit.

Get a large amount of money

There is no doubt that real estate is expensive, especially in Irvine CA. An average home price here is $829,000 as per the National Association of Realtors. So the people have to exhaust their savings to buy a large house.

No need to get multiple loans

The jumbo offers a large amount of money, it removes the need to approach multiple lenders to finance a big house. A single loan simplifies the life of the borrower, as you need to pay monthly installment.

A wide range of options

Just like other mortgages, jumbo offers different types of interest rates suit the borrower. You can select the fixed rate or adjustable rate for your Jumbo mortgage. You can choose according to your ability to make the monthly installment.

Get attractive rates of interest

The credit goes to the federal stimulus package in 2009, where the interest rates for jumbo loans have been dropped.

Easy application

Thanks to the In Irvine, CA lenders have made it easier for the prospective home buyers to apply for the jumbo loans. It has become simpler to apply for a loan as compared to a few years ago. The process of application for a loan has been streamlined and made borrower-friendly.

Attractive loans

The lenders are also offering some attractive offers such as medical insurance, quicker processing, reduced lender fee, etc. But the qualified borrowers are approved and they are the people with high credit scores and lots of assets to their name.

What Is A Jumbo Loan

What Is A Bridge Loan? – Everything You Need To Know!

What Is A Bridge Loan? – A bridge loan is a short-term loan that is used until the borrower secures permanent financing or removes the existing obligation. This financing allows the borrower to meet the current obligations by providing immediate cash flow.

The Bridge loan is also known as interim financing, swing loans, gap financing during the period when financing is required but not available. The corporations, as well as individuals, use bridge loans, and lender, offer these loans for various situations.

Why does a business need a bridge loan?

When a business is waiting for the long-term financing and needs money to cover expenses in the interim. Take a case of a company which is doing a round of equity financing expected to close in a short period of time.

In this case, bridge loan offers working capital to cover the inventory cost, payroll, utilities and day to day expenses until funding goes through.

How is a bridge loan helpful?

It is easy to get a job when you already have a job. Same you can buy a new home when you already have a home as well. You just like to leave your current job to join the new job.

The bridge loan bridges the gap between the sale value of your existing home to finance a new purchase for your new home. A Bridge loan allows homeowners to use 80% of the value of their existing home for sale as down payment.

What Is A Bridge Loan

What Is A Bridge Loan

Easy to finance a new home

It is a short-term loan which can fulfill your financial needs quickly. If you have planned a new home and your old house is sold but the settlement is still pending. You can get the bridge loan to buy the new home and repay the amount you get the payment.

Controls your property purchase

When you opt for the bridge loan you can acquire your desired property at any time you want. You are not bound by the funds, as you want to buy a property and you have applied for a long-term loan. Buy the property using a bridge loan and pay off the bridge loan after your long-term loan is approved.

Save your time

It is designed to generate the funding immediately to buy a new home. Especially as you have sold your existing home, but the settlement is still pending whereas the new home purchase is fully complete.

Temporary loan

A bridge loan is a temporary loan that is less than one year. In this loan, you salable asset works as a collateral to secure your loan. The bridge loan is paid as soon as the asset is sold.

No Monthly Installments

You don’t need to pay any EMI for a bridge loan, as the loan is paid once the property has been sold. It is a great loan if you don’t wish to bear the financial burden of making monthly payments.

Customization

A bridge loan can be customized to quality for a variety of needs. There are various types of loans for the individual as well as businesses.

How the bridge loan differs from a traditional loan?

Bridge loan has a faster application, approval and funding process as compared to the traditional loan. A bridge loan is a relatively short-term loan with a higher rate of interest and large orientation fee.

Generally, the bridge loan is accepted by the terms due to short, quick requirements and convenient access to funds. They are willing to pay higher interest rates as they know the loan is short-term and plan to pay it off with lower interest rates, by getting long-term financing quickly.  One of the best things about a bridge loan is it does not have prepayment penalties.

What Is A Bridge Loan

Wells Fargo Auto Loan Rates – Complete Guide for You

Wells Fargo Auto Loan Rates – Wells Fargo is committed to auto finance lending. This is one of the auto finance lenders in the nation where you can finance your purchase.

This is an American multinational financial services company situated in San Fransisco, California. It has its central offices located throughout the country.

It is the world’s second-largest bank by market capitalization and the third largest bank in U.S.by its total assets.

The company made it easy to select an auto loan by offering competitive interest rates, flexible terms, and excellent service. The customer with a good credit history is qualified to get a loan amount of more than $22,000 and less than 85% of the car’s value.

Annual percentage includes a relationship discount of 0.25%. You may qualify for it if you have the Wells Fargo checking account and maintain automatic payments.

Wells Fargo Auto Loan Rates

Wells Fargo Auto Loan Rates

Wells and Fargo offer loans up to 72-month loan terms. The loan rates are explained in detail.

  1. Refinance    (4.62%2)

Refinancing your auto loan is potential to decrease your monthly payments that help to manage your debt. Some people go for it to lower their monthly payment, the rate of reduction, new loan term or both. By extending the new loan term you may pay more interest over the life of the loan.

Merits of refinancing an auto loan

  1. Enjoy term flexibility
  2. Competitive rates, fixed interest, and monthly payments.
  3. Use your funds to fulfill other financial needs.
  • New Car from the dealer (3.88%2)

Buying a new car is a great idea, it works perfectly and you can keep it as long as you want. After the repayment of the loan, you own it outright. There are a lot of decisions to make before you get the keys.

Merits of Financing a new car from a dealer

  1. Find the vehicle within your the price range.
  2. Test drive the car you like.
  3. Explore and examine the promotions or incentives.
  4. Check the review the warranty and service contract.
  • A Used car from a dealer (4.14%2)

Buying a used car helps to save the money and time. The overall experience of the used car shopping is much like car shopping. The key point to keep in mind the condition of the vehicle, its age, and mileage.

Key points to keep in mind while buying a used car

  1. Check the vehicle history and valuation.
  2. Inspect the vehicle from the mechanic.
  3. Explore the certified warranty pre-owned programs.
  • Private Party Purchase  (6.84%2)

The private party loans are designed for those who purchase a car from a private seller. Buying a car from an individual has its own benefits. You can negotiate for a better deal and much more.

Points to keep in mind while making a private party purchase

  1. Consult the CARFAX or Kelley Blue Book to check the vehicle history and valuation.
  2. Take a test drive.
  3. Get the signed title and seller contact information.
  • Lease buyout  (4.34%2)

A lease, loan gives you the money to buy a currently leased car. Using this option you can avoid the penalty fee for wear and tear.

Points to keep in mind while making a lease buyout

  1. The market value of the car.
  2. Check if there is any purchasing fee.
  3. Depreciated value of the vehicle.
  4. How much is the lease fee?

If you want to get the relationship discount you must qualify for Well Fargo consumer checking account and make automatic payments from your Wells Fargo deposit Account.

Wells Fargo Auto Loan Rates

How To Get A Student Loan? [Everything You Need To Know!]

How To Get A Student Loan? – Paying for school fee is never easy. Some families and employers pay for it, but everyone is not so fortunate. If you want to come up with more money, you need to know how to get a student loan?

When you are going to borrow for education, you have various options. Make sure you must consider all of them and select that suits your requirement. Keep in mind that the loan you are taking, you have to repay it on someday.

Steps To Get a Student Loan

Steps To Get a Student Loan

Check the eligibility requirements for federal financial aid

In order to get the financial aid from the federal government, you must be the citizen of U.S. national. You also need to enroll at least half-time at an accredited college or university.

Complete your FAFSA

Fill your Free Application for Federal Student Aid during the month of January preceding the school year for which you want to be a student. The FAFSA is an important financial aid form that gives you access to a wide variety of government grants and loans.

Note: You can fill FAFSA online at www.fafsa.gov or download the form from the website and fill it.

Get your Expected Family Contribution

After some days of submission of the FAFSA, you will receive a report that confirms your application and informs you about your EFC.

Calculate the cost of your program

Once you have checked which school you are going or made a list of schools you have selected calculate their costs. Every school will provide the breakup of the cost, so you can easily check the financial aid offices you get the information. Consider the other factors such as housing, meals, books, transport, etc. with the tuition fee.

Compare the estimated cost with your EFC

In many cases, the estimated cost of attending the program of choice is more than your EFC. If you deduct your EFC from the annual cost you will get estimated financial aid required.

Go through the financial aid offers

When the official financial aid comes through from the school you selected read them. In many cases, they represent the maximum amount you will be able to get from the federal government and from the school.

Types of financial aid packages

Grants

You need not pay them back, so you can simply be able to accept them. In order to meet the education-related expenses, you can apply them.

Loans

The federal loans offered to you are based on your FAFSA. You can choose to accept some or all the money depending on your needs.

Work-study offers

The money earned by working after a certain number of on campus.

Know which types of loans you are accepting

Accepting a student loan means you are responsible for that debt. Take a time and understand how the loans work.

Check all the options available and compare them before accepting a federal loan

Many students graduate from college with a heavy amount of debt and no clear means to pay it. A student loan can be a financial burden that follows you for decades.

Start making payments while you are in school

To minimize your overall debt, start making payment during the school year. You have to manage small interest payments on your loans.

College loans help students to increase their value. The students who receive student loan can pay their debt after entering the job market.

How To Get A Small Business Loan? Complete Guide for You

How To Get A Small Business Loan? – You always need to finance to power your small business. If you don’t have the money available you can take a small business loan.

Before you start to research for getting a small business loan, there are some key points which should be kept in mind. First of all, you need to figure out how will you use that money it means how will you pay it back.

In the absence of a strategic target plan, you cannot put that money to work. A small business owner should understand the financing options available to grow the business. The small business lending companies in the U.S. are authorized to provide Small Business Administration to provide loans and debt instruments to small business.

How To Get A Small Business Loan?

How To Get A Small Business Loan?

Amount of business loan and the reason for

Obviously, you need a small business loan for a reason. In case a business is a start-up this is necessarily true. The owners of a startup can process of determining the number of funds they require.

The owner needs to clearly articulate why they require a business loan. To give a reason for the requirement of the loan and the owner must prepare their financial statements as part of their business plan.

Visit the SBDC office and check the local score

You need to get the advice and help from the experienced executives, especially when your business is a startup. If you have a SCORE in your area, it is a wonderful and free source of help.

SCORE is a non-profit, volunteer group, here you can get the help of retired business executives. You can also get the online advice and online counseling.

Check your credit history and score

If you are the owner of a is a startup business or your business is less than three years old, your personal credit history will be evaluated. Before you apply for a small business loan you must arrange all your personal credit history records in order.

You need to request your credit report from each of the major credit reporting agencies. Check these reports and if you find any errors make them correct with the agency.

Note: A credit score of about 700 is good and increases the chances of loan approval.

Review the borrowing options

Check the commercial banks available to you, don’t go for national commercial banks. The better chances of getting a loan are in the smaller regional commercial banks. A non-bank institution may be the option such as a credit union.

If you are the member of a credit union you need to talk the loan officer there. If they offer such loans just get a loan application and fill the same. Don’t worry if one lender says no to you another might approve your loan so keep on trying. You can also go for microfinance loans that are designed for startups.

Make a business plan

It is an important step to get a small business loan, you must have a good business plan. The best plan increases the chances of getting a loan much fast and you need to repay it faster.

A business plan includes project financial statements for your business. It includes collateral or the value of assets you will use to get a secured loan.

Make a presentation and fix the appointment

To give your application to the loan officer you need to prepare a presentation of your business plan as well as application. Make financial statements, spreadsheets, graphs, etc. Don’t forget to make an executive summary first.

Then make an appointment with your loan officer and request enough time to do a short presentation. Be organized and concise while presenting your details.

How To Get A Small Business Loan?