Cash Out Terms for Illinois Jumbo Mortgage Loans
As college expense continues to skyrocket, many parents are turning to their home equity to help pay for some of these costs. According to CNN Money’s college expense calculator, Notre Dame and Northwestern will cost you about $60,000 per year for tuition, books, room and board.
Many lenders limit the cash proceeds from the cash out refinance transaction to $300,000, but may consider exceptions to $500,000 for strong borrowers. Also, lenders will typically limit the loan to value to 70% or less for cash out refinance transactions on jumbo mortgage loans. So, as an example, if your home is worth $1,000,000 you can borrow up to $700,000.
With jumbo ARMs near all-time lows, this seems to be a great option for home owners with children who are attending college. Please call Mike Dulla, President, with any questions regarding jumbo mortgage loans for Illinois Homes at (708) 531-8388.