Have you heard the story about the guy who received a package through FedEx from CHASE offering him a mortgage rate reduction from a 5.525 percent to 4.25 percent with no closing fees. Yep, the one that reduced his monthly payments by 25 percent at no extra cost. Well, I have heard those stories too. And believe it or not, they are true. It is called the Chase Mortgage Rate Reduction Program. It is not often you get to share good news in the mortgage refinance industry. So let’s savor it. I know it sounds like betrayal to say a lender, especially a lender with the reputation of CHASE, is actually offering a good deal, but it is the truth. Don’t worry we are not selling ourselves to Corporate America. There is a catch.

Now here is the catch. You don’t need to be told that Chase is not known for its charitable actions, at least not in the lending and refinance industry. However, Chase has taken a brave step forward in aligning its own interests with those of its clients, BUT (and it is a big but) this is only open for certain borrowers. And this is the key point. You cannot call Chase and ask for a form to join the program. This is an invitation only program. Who gets invited? You will not find a fact sheet on Chase’s website or a pretty flyer at your local Chase branch.

Here is how it happens. You get a package FedExed to your home that contains a letter with wording along these lines:

"It seems like responsible homeowners like you – who always pay their mortgage on time – are the only ones who haven’t received mortgage "relief." At Chase, we think you deserve relief as much as anyone else, and we believe we can lower your mortgage rate now through the Chase Rate Reduction Program."

The couple that received this letter was being offered a 0.75 percent reduction on their mortgage at NO EXTRA COST, simple, no small print. Why? You may ask. Here is where it gets interesting.

Chase is simply acting in its best interest as a lender. Happily though, the best interest of CHASE, in this case, is directly aligned with that of many responsible financially savvy homeowners.

The couple that received the email had been aggressively paying of their 15 year mortgage with extra monthly payments on the principle every month; they had good credit and an impeccable credit history. The market is now good for that kind of customer. If you have the right credit history you can now qualify for very low fixed-rate loans. Customers and banks know this. Chase does not want to lose quality customers to another bank. So, they have decided to be proactive and offer their customers a deal they can’t refuse and keep them as customers instead of letting them go.

Many are calling this program a scam. Why? Would you like to know more about this program? What can you do to joint it? Read on for more information.

Jumbo loans are used to finance higher priced homes which exceed the dollar amount that is allowed in a conventional loan. Freddie Mac and Fannie Mae, the government agencies that market mortgages, sets the monetary limits for which a conventional loan becomes a jumbo loan. Homeowners with jumbo mortgages are charged a higher interest rate. Freddie Mac and Fannie Mae buy the majority of mortgages from lenders and resell them on the open market to investors. During the financial crisis, lenders and investors did not want to purchase jumbo mortgages because they were a risky investment. Jumbo mortgages did not sell easily in the secondary market.

Nearly two years ago the credit crisis severely crippled the mortgage market for high-end borrowers. Today, there is new help for jumbo mortgages. Jumbo mortgages are priced at a more competitive rate, making it easier for homeowners with jumbo loans to refinance. The interest rates for jumbo loans are the lowest since around 2003. Affordable jumbo mortgages will help influence consumers to purchase a home. The resurgence of jumbo mortgages will help aid the recovery of the housing market Applications for jumbo loans has increased at retail branches in recent months, according to Citigroup, Inc. Bank of America, the largest mortgage lender in America, is offering jumbo loans at a competitive interest rate in the 5% range.

Bank of America will roll out a loan program that will provide jumbo loans between $730.000 and $1.5 million with an interest rate in the 5% range and a fixed 30 year mortgage. These loans will be available from Bank of America and its subsidiary, Countrywide Home Loans. Countrywide, one of the biggest subprime leaders was purchased by Bank of America last year. In April of 2010, the two financial institutions consolidated under one name, Bank of America Home Loans. In the past several months, there has been a 50% rise in the sale of homes with a jumbo mortgage. Jumbo loan borrowers may be the first to see an overall improvement in the housing market. If standard underwriting guidelines are followed, then jumbo loans can be one of the safest loans out there today. Borrowers who take out a jumbo loan will still need an excellent credit score to qualify for a loan. They will need a credit score of at least 700 and money in the bank to cover six months of payments. Borrowers must put down a minimum down payment of 20 per cent.

Typically, an area with a high concentration of expensive homes has relied on jumbo loans to finance their home mortgage. Last year, the private mortgage bond market on Wall Street collapse leaving consumers, builders and people wanting to refinance with very few options, except to pay a higher interest rate and put up a large down payment. With interest so high, borrowers attempted to avoid a higher mortgage payment by taking out a ?piggyback? second mortgage. Usually taken out a second smaller mortgage results in a lower monthly payment, than with a jumbo loan.

The monetary limit for a convention loan remains at $417, 000. In some areas with a heavy concentration of high-end home, especially in California, some areas of Florida, the Northeastern area of the U.S., Hawaii, Guam and the Virgin Islands has a higher limit for taking out a conventional mortgage. In 2008 this amount was raised from $417,000 to $625,000. New help was provided for jumbo mortgages with the passing of the economic stimulus legislation by Congress last month. The monetary limit was increase to $729,750 in some areas of the country.

Bank of America and other financial institutions, who are major players in the jumbo loans market, has become more active in recent months with providing new help for jumbo mortgages. Underwriting standards has become very rigorous. Lenders requires substantial cash reserves and liquid resources, six months of mortgage payments in the bank and fully documented credit scores and income. With the economy still in recession, jumbo conforming loans at $729,750 may never get off the ground. To revitalize the mortgage crisis, jumbo loans need to be available to consumers purchasing higher-cost homes. This will assure that new buyers and homeowners needing to refinance can take advantage of the lower interest rate for jumbo loans.

Jumbo Mortgages Now easier to get

Jumbo Mortgages Now Easier to Get
It is not surprising that with all of the turbulence in the home mortgage industry many consumers are confused and reluctant to take out a loan. Unfortunately, countless buyers and home owners are missing out on some incredible deals. They do not realize the current situation; jumbo mortgages now easier to get.
What is a jumbo mortgage? Typically, it is a loan that is in excess of the maximum amount limit that is set by Fannie Mae and Freddie Mac. These are large loans for higher end priced homes.

The crisis in the banking industry has been in the news headlines lately and people have naturally assumed that large home loans have become more difficult for buyers to be able to qualify for. However, in an effort to help the banking industry, Congress passed an economic stimulus package which included sections that would aid home borrowers. The intent was to make jumbo mortgages, those loans over the $417,000 limit set by Fannie Mae and Freddie Mac, easier and cheaper to get.
] Jumbo mortgages now easier to get. This is the trend as mortgage industry leaders are beginning to see the light at the end of the tunnel. Many are confident that positive trends are beginning to emerge. The conditions are beginning to improve to the point where it is not only making it easier to qualify for the loans but it is also responsible for the rates to drop.
Many real estate brokerage firms are seeing a sharp increase in activity in the jumbo loan market segment. Some firms are reporting as much as a 40% increase in their jumbo mortgage loans. As more activity is stimulated in the home mortgage market, credit will further loosen up which will help the higher priced home market. This is a great time to look for a home loan; jumbo mortgages now easier to get.
For those who are still skeptical, the picture becomes perfectly clear by looking at the figures. Compared with the rates from last year, jumbo loans for those who are highly qualified are presently at about a half of a percentage lower than they were twelve months ago. The required down payment amount has also dropped. Home borrows can secure a jumbo mortgage with 20% down which is less than the 30% that was required at the end of last year. If you are in the market then you are in luck; jumbo mortgages now easier to get.
The economic situation today makes it an uncertain time for home buyers. There has not been an abundance of good news lately but some indicators are now looking better. While many borrows remain nervous about taking out a home loan, there is some good news. For those consumers who are seeking a jumbo loan, whether for a new home or for a refinance, this is a good time to do it. The present home mortgage situation is this; jumbo mortgages now easier to get.