Question 1

What's the monthly payment on a $1.25M jumbo loan at today's rate?

Accepted Answer

At 6.375% on a $1.25M loan, principal and interest run $7,793 per month. That's on a 30-year fixed with 0.472 points ($5,897 upfront). Add property taxes, insurance, and HOA — total housing payment is typically $10,500-12,000 depending on the home.

Question 2

Do I need 20% down to qualify for a jumbo loan?

Accepted Answer

Yes. Jumbo lenders require 20% down minimum. That's $312K on a $1.56M home. Some lenders go to 25% down for self-employed borrowers or those with weaker income documentation. Less than 20% and you're automatically declined.

Question 3

How much do I need in reserves to close a jumbo loan?

Accepted Answer

Lenders want 6-12 months of reserves after closing. On a $7,793 payment, that's $47K-94K sitting in the bank beyond your down payment. Reserves prove you can handle the payment if income drops. Without them, you won't close.

Question 4

How long does a jumbo loan take to close?

Accepted Answer

Jumbo underwriting runs 45-60 days. Conventional closes in 30 days. The extra time is appraisal complexity, employment verification, and asset documentation. Plan for two months from application to funding.

Question 5

Is a jumbo loan worth it in East Palo Alto?

Accepted Answer

Yes, if you have the down payment and reserves. East Palo Alto homes typically run $1.4M-1.8M. Conventional maxes at $1.25M, so jumbo is your only option. The rate premium (0.25-0.5% above conventional) is the cost of access to this market.

Jumbo 30-year fixed mortgages in East Palo Alto: $1.25M+ loans for Silicon Valley homes