Jumbo .. or Piggyback Loan. Which is Best?

 Jumbo .. or Piggyback Loan.  Which is Best?     

   "Ask the right questions if                 
you're going to find the right answers."            
Actress, Vanessa Redgrave

     I've written about Jumbo Loans ... and the many options that exist within them, several times in the past ...  

     The definition of a Jumbo Loan has typically been:  Loans above $417,000 in most markets ... although higher loan amounts have been available in certain high-end markets.

     Recently a new loan option has become available though. This loan option provides a 89.9% Loan-to-Value (10.1% Down Payment) ... and it can be obtained WITHOUT Mortgage Insurance (usually required on loans with less than 20% Down Payment).

     Financing options also exist that help Borrowers avoid Jumbo Loan Limits by issuing a Second Mortgage at the same time as the First Mortgage.  This option can serve many beneficial interests for Borrowers.

     Those benefits would include:

  • Eliminating Mortgage Insurance
  • Qualifying for a First Mortgage loan amount at "Conforming" loan limits. (Especially beneficial if Interest Rates are lower by doing so)
  • Scenarios approvable in a "Conforming Loan Product" that otherwise would NOT be approved if submitted as a Jumbo Loan

     This second mortgage option, referred to as a "Piggyback" Loan, is typically a HELOC (Home Equity Line of Credit). The HELOC helps serve as a Down Payment "supplement", designed to reduce the amount of the First Mortgage.

     In these types of lending scenarios, it's very important to obtain all the facts and costs from your Mortgage Lender, ask questions, and weigh all information carefully.


   There are both pros and cons that come with these loans. I can't stress the following point too strongly ... 

     Obtain a full presentation of facts and figures ... and make sure you understand them all thoroughly prior to making your financing choice.

     All in all, the scales have tipped in the favor of the Luxury Home Buyer, given the current low Interest Rates and the competition now found between Lenders for higher-end business.   

     Options DO exist!  For information on Jumbo financing options ... and other types of mortgages available in the Chicago-area, contact me today!   


I can be found at the following:

Gene Mundt
Mortgage Lender  -  NMLS #216987  -  IL Lic. #0006220  -  WI Licensed
American Portfolio Mortgage Corp.
NMLS #175656

Direct:  815.524.2280
Cell/Text:  708.921.6331
eFax:  815.524.2281
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       Gene Mundt, Mortgage Lender, a Lender with 37 years of mortgage experience, will offer you exemplary mortgage service and advice when seeking:  Conventional, FHA, VA, Jumbo, USDA, and Portfolio Loans in Chicago and the greater Chicagoland region, including:  The Lincoln-Way Area, Will County, (New Lenox, Frankfort, Mokena, Manhattan, Joliet, Shorewood, Crest Hill, Plainfield, Bolingbrook, Romeoville, Naperville, etc.), DuPage County, the City of Chicago, Cook County, and elsewhere within IL

Your Referrals are Welcomed!


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