Read what founder and president Robert Cohan has to say about the current state of the jumbo loan market and how borrowers can save thousands in interest on their home mortgage. Read an excerpt from the feature on interest.com below, and click here to see the original article.
Jumbo ARMs are attractive
Borrowers often start by looking at fixed rates, but Tierce counsels them to consider adjustable rates, especially 7- or 10-year ARMs because the lower initial interest rate can save borrowers a bundle.
Robert Cohan, president of Carlyle Financial, a mortgage bank in Beverly Hills, Calif., says a typical jumbo loan borrower can save $100,000 over the time they own a home by taking out an ARM instead of a 30-year fixed loan.
“For a jumbo loan, to save a percentage point makes a huge difference,” Cohan says.
Read more on the interest.com site here.