Ben Clifton from PNC mortgage and I had the opportunity to talk about jumbo loan programs recently.
There has been a lot of talk about jumbo loan programs in the market and I thought it would be great to get some answers.
How much is a jumbo loan?
According to Ben, a jumbo loan is exactly $484,350 and above. I commented on how that is a very specific amount. “It is a specific number, he told me. “ I don’t know where they came up with it, but that is the number for a jumbo loan today.”
What makes PNC’s jumbo program stand out?
Any loan above $484,350 is considered jumbo. I asked Ben what makes PNC’s jumbo program stand out among other lenders out there? He said, “The biggest thing is that PNC is extremely aggressive about wanting to do jumbo loans. In order to make sure we get plenty of them, we have fantastic pricing. Our interest rates for jumbos are very low at PNC.”
When people are comparison shopping interest rates, PNC pretty much knocks it out of the park every time.
Taking out the fear factor
I have a lot of clients who get scared when they get to the point of looking at these jumbo loans. They figure that it’s a lot of money and they haven’t done that type of loan. There is something kind of scary about that ‘jumbo’ word. Ben shared he hears that when starting a conversation with someone who is interested in a jumbo loan. “People know that historically jumbo rates used to be a lot higher than a conventional loan, but at PNC right now, our jumbo rate is actually lower than conventional loans.”
Rates are pretty much the main concern that clients have. Once Ben can alleviate that, customers start to understand a jumbo loan might be a better deal than a conventional loan. Rather than try to avoid a jumbo loan, it’s better to just go ahead and do a jumbo loan.
Who are you paying?
Since PNC is able to do their loans at such low rates, it is a loan that stays with PNC. PNC services all of the loans that they execute, especially the jumbo loans. “We keep them in house, so they’ll be with us from application up until a client sells the home or refinances,” Ben told me.
This is so reassuring. There was a time when loans were being sold and people got stuck. A loan customer would get a letter in the mail that their mortgage was being sold yet again. Clients would call me to find out if it was a fraud or legit. It is overwhelming. Many clients like the idea of knowing exactly who they are writing a check to every month. With a PNC jumbo loan, you know who you are paying.
If you are interested in contacting Ben Clifton at PNC bank to discuss jumbo loans contact him at ben.clifton@pnc.com or call 919-788-5969.
If you need recommendations on lenders that have loan programs that may work for you, please contact me.
