One reason that jumbo mortgage refinancing has become so hard for many homeowners to do is because banks will no longer do stated income loans. A stated income loan was when someone who writes off their income and can’t show it on a tax return states what their income actually is. Because of the economic crisis that we have went through many banks want to know 100% how much money you make and this is why they require your personal tax return to show your income. For many people that are looking for jumbo mortgage refinancing they own their own business and because of this it makes financial sense for them to write off lots of their expenses and show a small personal income. So this is why so many homeowners are struggling to get jumbo mortgage refinancing.
Another reason why jumbo mortgage refinancing has become so hard to do is because many banks have cut their jumbo mortgage refinancing programs. They have cut these programs because they are not able to sell these mortgages on the secondary mortgage markets.
Although there are so few lenders that are offering jumbo mortgage refinancing there are still some banks that will do it. The requirements may be a little more tough than before but there are still many mortgage bankers that are able to get jumbo mortgage refinancing for their clients. These loans will require much higher credit scores than before. Also they will have to have a much lower loan to value than they used to be able to offer. Also many of these mortgage companies will only be able to offer these homeowners adjustable rate mortgage and will not be able to offer them a 15 year or 30 year fixed rate mortgages. Many homeowners looking for jumbo mortgage refinancing are just happy to get into a much lower payment.
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