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Jumbo Financing Options

If you have a higher property value and can manage larger monthly mortgage payments, consider a jumbo, or non-conforming, loan. A jumbo loan provides financing for loan amounts higher than the maximum conforming limits set by Fannie Mae and Freddie Mac. A “blended jumbo” combines a mortgage and home equity line of credit, and may provide greater payment flexibility. Both are available for purchase and refinance loans (including cash-out refinances).

Jumbo loan

Jumbo loan: Monthly payment on a $300,000 loan. Jumbo mortgage: $1,800.
 

Features

Mortgage + home equity financing

Mortgage + home equity financing. Monthly payment on a $300,000 loan. $1,000 mortgage. $200 home equity loan. $1,200.
 

Features

  • This blended jumbo loan pairs a “conforming” first mortgage with a home equity line of credit.
  • The first mortgage is available in a variety of fixed-rate and adjustable-rate loan options — the home equity line of credit has a variable interest rate.1
  • You may be able to add extra mortgage features, such as temporary buydowns.

Benefits

  • You can obtain financing for loan amounts up to $2 million.
  • Provides the convenience of one loan for the entire loan amount and the choice of a variety of loan options.
  • You may be able to access additional benefits through our Private Mortgage Banking (PMB) group.

Benefits

  • Have ongoing access to your available equity without reapplying.
  • Choose whether your line of credit balance will be charged a variable- or a fixed-interest rate with our flexible fixed-rate advance option.
  • Enjoy additional benefits, if eligible, with our Home Asset ManagementSMAccount.2

Considerations

  • Interest rates are usually slightly higher on jumbo mortgage loans than on conforming loans with lower loan amounts.

Considerations

  • You will have to make two separate monthly payments.
  • If you choose a variable interest rate for your line of credit balance, your monthly payments may increase or decrease as interest rates fluctuate. You can convert any or all of your outstanding variable-rate line-of-credit balance to a fixed-rate advance with a term of 1 to 20 years.3
  • For a jumbo loan with a potentially lower total monthly payment, consider using the fixed-rate advance option on your home equity line-of-credit.3
For your mortgage needs:
1-877-937-9357
For your home equity needs:
1-888-667-1772

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Non-Conforming Loans

 
These are loans that do not satisfy the standard underwriting guidelines and loan amount limits set by the government sponsored enterprises Fannie Mae and Freddie Mac. These loans therefore cannot be sold to either of these two agencies in the secondary market.
 
 
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Fannie Mae (Federal National Mortgage Association - FNMA)


A tax-paying corporation chartered by Congress to support the secondary mortgage market. It purchases and sells residential mortgages insured by the Federal Housing Administration (FHA) or guaranteed by the Veterans Administration (VA) as well as conventional home mortgages.

And
Freddie Mac (Federal Home Loan Mortgage Corporation – FHLMC)

Freddie Mac, one of America's biggest buyers of home mortgages, is a stockholder-owned corporation chartered by Congress in 1970 to keep money flowing to mortgage lenders in support of homeownership and rental housing.
 
 
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Conventional Conforming Mortgage

 
A mortgage that is not obtained under a government program (such as FHA or VA). It also satisfies the standard underwriting guidelines and loan amount limits set by the quasi-government agencies, Fannie Mae and Freddie Mac. These loans, therefore, can be sold to either of these two agencies in the secondary market.
 
 
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Private Mortgage Insurance (PMI)

 
Private mortgage insurance (PMI) protects the lender against a loss if a borrower defaults on the loan. It is usually required for loans in which the down payment is less than 20% of the sales price or, in a refinancing, when the amount financed is greater than 80% of the appraised value.
 
 
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Variable Interest Rate

 
An interest rate that may fluctuate or change periodically, often in relation to an index, such as the prime rate or other criteria. Payments may increase or decrease accordingly.
 
 
 
1
The Annual Percentage Rate (APR) is variable and is based on the highest Prime Rate published each day in The Wall Street Journal Money Rates Table (the "Index"), plus a margin. The Index as of the last change date of December 17, 2008, is 3.25%. As of April 11, 2014, current margins for lines of credit from $20,000 to $500,000 secured by owner-occupied properties with 70% combined loan-to-value range from 3.750% to 0.375% resulting in corresponding variable APRs ranging from 7.000% to 3.625%. For larger loan amounts, please contact us. Minimum APR is 1.00%; maximum APR is 18%. The quoted APR includes a 0.375% discount for a qualified Wells Fargo PMA® Package relationship and does not include costs. Your APR will be based on the specific characteristics of your credit transaction, including evaluation of credit history, CLTV, property type, amount of credit, and term. Texas homestead properties are limited to an 80% combined-loan-to-value or 50% of fair market value, whichever is less. There is no annual fee or prepayment fee for accounts secured by Texas homestead properties. All other accounts are subject to a $75 annual fee which is waived for the first year. If provided for in your original contract, the fee will be waived thereafter if you maintain a minimum average daily balance of $20,000 or more for twelve consecutive months previous to the annual fee assessment date. The prepayment penalty fee will be $400 for lines of credit $20,000 or greater. Opening fees may be paid to Wells Fargo, its affiliates or third parties and range from $19 to $9,000 depending on the property type, the state in which the property is located and the amount of credit extended and include applicable state or local mortgage taxes. The Line of credit has a Draw Period of 10 years plus 1 month, after which you will be required to repay any amounts borrowed within a 15- or 20-year term, depending upon your account balance. Only one qualifying Wells Fargo PMA® Package relationship discount per new Wells Fargo home equity line of credit will apply. To qualify for the discount, customers must maintain a PMA package checking account and continued automatic payments from a Wells Fargo checking or savings account. If the qualifying checking account is closed, or if the automatic payment is not selected or is cancelled at any time after the credit account is opened, the interest rate and corresponding monthly payment may increase. Additional restrictions, limitations, and exclusions may apply; please contact a Wells Fargo banker for further details. The PMA package is free of the $30 monthly service fee for each month the statement-ending balances in qualifying deposit accounts, credit accounts (10% of outstanding eligible mortgages), and brokerage accounts (available through Wells Fargo Advisors, LLC), total $25,000 or more. Deposit accounts, including PMA Prime Checking account, offered by Wells Fargo Bank, N.A. Member FDIC. Hazard and, if applicable, flood insurance is required.Checking account, offered by Wells Fargo Bank, N.A. Member FDIC. Hazard and, if applicable, flood insurance is required.
2 The Home Asset Management Account is not offered in Texas.
3 There is no limit on the maximum amount of a fixed rate advance taken at origination (up to your credit limit). The minimum fixed rate advance amount is $10,000. After account opening, additional fixed rate advances may not exceed $250,000 of the aggregate principal balance, or your credit limit, whichever is less. You may request up to 2 fixed rate advances each year with up to 3 fixed rate advances at one time. Fixed rate advances have a term of 1 to 20 years, depending on the amount advanced; except that for Texas homestead secured accounts, the term is 1 to10 years.
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