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JPMorgan Chase to raise mortgage borrowing standards

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Valued Contributor

Re: JPMorgan Chase to raise mortgage borrowing standards


@Revelate wrote:


Did you get a chance to see their tier sheets in terms of what loan products required what LTV?

 

Chase wasn't close to competitive when I originally talked to them on the Houston place (conventional loan) but if I pick up my dad's place depending on whether it's fixed up yet or not, might be a jumbo ergo portfolio loan.


No, this was done remotely rather than in-branch so I didn't get to shoulder surf any tiers.

 

The rates they offered were competitive. Searching around I can probably shave 0.05% or so, but they're pretty close. We can do even better on a 15-year, but that's going to be wholly dependent on whether we can score a home toward the lower end of our price range rather than the upper end.

 

Jumbo's our only option. Even if we did a 50% down payment, the remainder would still be too high for a traditional mortgage. Last year we would have done a large down payment or even all-cash, but now it's looking more sensible to take a 3% (or lower) interest rate with 20-25% down and park the rest in the stock market.

Message 21 of 23
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Moderator Emeritus

Re: JPMorgan Chase to raise mortgage borrowing standards


@iced wrote:

@Revelate wrote:


Did you get a chance to see their tier sheets in terms of what loan products required what LTV?

 

Chase wasn't close to competitive when I originally talked to them on the Houston place (conventional loan) but if I pick up my dad's place depending on whether it's fixed up yet or not, might be a jumbo ergo portfolio loan.


No, this was done remotely rather than in-branch so I didn't get to shoulder surf any tiers.

 

The rates they offered were competitive. Searching around I can probably shave 0.05% or so, but they're pretty close. We can do even better on a 15-year, but that's going to be wholly dependent on whether we can score a home toward the lower end of our price range rather than the upper end.

 

Jumbo's our only option. Even if we did a 50% down payment, the remainder would still be too high for a traditional mortgage. Last year we would have done a large down payment or even all-cash, but now it's looking more sensible to take a 3% (or lower) interest rate with 20-25% down and park the rest in the stock market.


Jumbo paper Chase is my go to lender FWIW and I'm really starting to lean towards just picking up my dad's place and if I have to go the traditional financing route they're who I'm going to talk to.  Conventional I skip the big banks but when we're talking portfolio loans they actually want that business and their rates are basically in line with each other as a general rule.  Sadly not the case with agency loans where they'd rather foist that highly regulated area off on other lenders.

 

Same thinking as I had though, except I got a cheap enough place that it made sense for me to do 5% and like you say, keep the rest parked in the stock market.  What rate did you get out of curiosity on your potential jumbo note?  Also I don't know if I'd do a 15 year ever again, the rates are so low better to keep payments low, you can always pay it off earlier if you want through additional payments and the math turns out about the same but not *having* to make those additional payments if things get tight is solid fiscal defense.

 

Actually solid financial offense too: 7/15 purchase, $900/month extra call it, that's $51300 bucks that could've been invested since then.  Time-weighted (I know napkin math worthy only) since half that time would've been ~$80000 today which would've dwarved the additional interest, and absolutely moves the needle on my net worth. Clear financial mistake, strongly suggest go 30 year and deploy that money how you see fit Smiley Happy.

 




        
Message 22 of 23
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Valued Contributor

Re: JPMorgan Chase to raise mortgage borrowing standards


@Revelate wrote:


Jumbo paper Chase is my go to lender FWIW and I'm really starting to lean towards just picking up my dad's place and if I have to go the traditional financing route they're who I'm going to talk to.  Conventional I skip the big banks but when we're talking portfolio loans they actually want that business and their rates are basically in line with each other as a general rule.  Sadly not the case with agency loans where they'd rather foist that highly regulated area off on other lenders.

 

Same thinking as I had though, except I got a cheap enough place that it made sense for me to do 5% and like you say, keep the rest parked in the stock market.  What rate did you get out of curiosity on your potential jumbo note?  Also I don't know if I'd do a 15 year ever again, the rates are so low better to keep payments low, you can always pay it off earlier if you want through additional payments and the math turns out about the same but not *having* to make those additional payments if things get tight is solid fiscal defense.

 

Actually solid financial offense too: 7/15 purchase, $900/month extra call it, that's $51300 bucks that could've been invested since then.  Time-weighted (I know napkin math worthy only) since half that time would've been ~$80000 today which would've dwarved the additional interest, and absolutely moves the needle on my net worth. Clear financial mistake, strongly suggest go 30 year and deploy that money how you see fit Smiley Happy.

 


30-year is 3% even. I could probably negotiate it further with points, but 3 is low enough that I have a lot of runway for growth parking the excess in stocks so I'm good with it. Just have to find a place in our budget now.

Message 23 of 23
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