Question 1

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

Accepted Answer

Principal and interest run $7,793 monthly at 6.375% on a 30-year fixed. Add property tax, insurance, and HOA if applicable. The scenario assumes a $1.56M purchase, $312K down (20%), 740 FICO, 30-day lock.

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 purchase. You cannot go below 80% LTV on a jumbo loan in California.

Question 3

What credit score do I need for a jumbo mortgage?

Accepted Answer

700 FICO is the floor. Most lenders prefer 740+. At 740, you'll qualify at the best rates. Below 700, you'll face rejection or higher pricing.

Question 4

How much cash reserves do I need after closing?

Accepted Answer

6-12 months of housing payment in liquid savings. On a $7,793 payment, that's $47K–$94K in the bank after you close. Retirement accounts don't count.

Question 5

How long does a jumbo loan take to close?

Accepted Answer

Correspondent lenders typically close in 45-60 days. Portfolio lenders may close faster (30-45 days) but charge higher rates. Jumbo underwriting is stricter than conventional, so don't expect a 21-day close.

Jumbo 30-year fixed mortgages in Morgan Hill: rates, qualification, and what $1.56M buys