Jumbo loans require a great amount of intelligence when choose a loan program.

A 1 million dollar loan for instance, the borrower is not going to choose a long term loan such as a 30 year fix or 15 year. There would be no point because they would end up paying millions in interest over the span of that time.

The right loan for Jumbo Amounts would be an Option Arm, if the property is in an area where the appreciation rate exceeds the negative amortization. Option Arm is also know as pick your payment because you have the choice of picking how much you would like to pay each month. As low 1% to about 5.5% depending on the situation.

This is the best investment strategy for a property of that size. If you choose to pay the minimum of 1% monthly, the loan amount does amortize and increase, but is countered by the appreciation rate especially in California. Other loans that may be just as appealing would be interest only loans on a 2/3/5/7 Year Arm
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Kevin
klu@nationwidemortgage.net
Nationwide Mortgage
Toll free (866)427-7200