How a Mortgage Advisor Can Save You Thousands: Best Home Loan Strategies

Why a Mortgage Advisor Can Save You Thousands on Your Home Loan

When it comes to buying a home, even a slight difference in interest rates can save—or cost—you thousands of dollars over the life of your mortgage. Yet, many homebuyers leave money on the table by not working with an experienced mortgage advisor.

At Peregrine Financial, we don’t just help you secure a loan; we ensure you get the right loan for your financial situation. With expert guidance, competitive rates, and tailored loan programs, we help you make informed decisions that support your long-term financial goals.

Why You Should Work with a Mortgage Advisor

Many homebuyers assume that working directly with a bank is the best option. However, banks typically promote their own mortgage products rather than searching for the best possible deal for you. A mortgage advisor, on the other hand, compares loan options across multiple lenders, ensuring you secure the most competitive rates and terms. Here’s how we help you save money and stress:

1. Access to Competitive Rates

Would you buy a car without comparing prices? Your mortgage should be no different. Unlike big banks that push their own loan products, we analyze multiple lenders to find you the best deal for your specific financial situation. A fraction of a percentage point in interest can mean tens of thousands of dollars saved over the course of your mortgage.

For example, according to data from Freddie Mac, even a 0.5% reduction in interest rates can save homeowners over $100 per month on a $300,000 loan, adding up to more than $30,000 in savings over a 30-year term.

2. Tailored Loan Programs for Your Unique Needs

Not all mortgages are created equal, and choosing the wrong one could cost you thousands. We help match you with a loan that aligns with your financial goals and circumstances, including:

• First-time homebuyers – Find low down payment options and first-time buyer incentives.

• Self-employed buyers – Navigate unique income verification requirements.

• Investment property buyers – Secure the right financing to maximize returns.

• VA, FHA, and Jumbo Loans – Understand the best loan type for your situation.

  
  

3. Financial Clarity & Smarter Decision-Making

Mortgage agreements can be complex, and hidden fees or unfavorable terms can result in unexpected financial burdens. Our job is to simplify the process, ensuring you understand every aspect of your mortgage, from interest rates and loan terms to taxes and insurance costs.

By providing clear, transparent guidance, we help you avoid common pitfalls such as:

• Overpaying on interest due to a poor loan structure.

• Unexpected fees that increase your overall loan cost.

• Being locked into a mortgage that doesn’t fit your long-term financial plans.

  
  

The True Cost of Not Using a Mortgage Advisor

Many homebuyers assume they’re getting the best rate just by shopping at their local bank. However, without comparing multiple options, you could be leaving thousands of dollars on the table.

For example, a borrower who chooses a 4.5% interest rate instead of a 4% rate on a $400,000 mortgage will end up paying approximately $35,000 more in interest over 30 years. That’s money that could have been invested, used for home improvements, or saved for retirement.

Get a Free, No-Obligation Consultation Today

The right mortgage can mean the difference between financial freedom and unnecessary debt. At Peregrine Financial, we take the guesswork out of the home loan process, ensuring you make the best financial decision possible.

Don’t settle for just any loan—get the right loan. Contact us today for a free, no-obligation consultation and discover how we can save you money on your mortgage.

What is a Jumbo Loan?

If you’re shopping for a home and come across the term jumbo loan, do you know what it means? Whether you’re buying a luxury home, a property in a high-cost area, or just need a larger loan amount than conventional loan limits allow, jumbo mortgages could be exactly what you need.

What is a Jumbo Loan?

A jumbo loan is a mortgage that exceeds the conforming loan limits set by Fannie Mae and Freddie Mac, which are the two government-sponsored enterprises that buy mortgages from lenders. These limits vary by location, but in most parts of the U.S., the 2024 conforming loan limit was $766,550 for a single-family home. In high-cost areas, such as parts of California, the limit can be as high as $1,149,825.

If you need a mortgage that’s larger than these limits, you’ll need a jumbo loan, which is considered a non-conforming loan because it doesn’t meet Fannie Mae and Freddie Mac’s guidelines.

Why Would You Need a Jumbo Loan?

You might need jumbo mortgage loans if:

• You’re buying a high-value home that exceeds the conforming loan limits.

• You’re purchasing in an expensive real estate market where home prices are higher. The Los Angeles area can have high housing prices, but Peregrine Financial is a top mortgage lender in California and can help buyers get the right mortgage for them, even with a low credit score.

• You want to finance a luxury property with a single loan rather than multiple loans.

Since home prices have been rising steadily, more borrowers are finding themselves in the jumbo loan category, even if they aren’t necessarily buying a mansion.

Jumbo Loan Requirements

Because jumbo loans are riskier for lenders (since they aren’t backed by Fannie Mae or Freddie Mac) or maybe even the Federal Housing Finance Agency (FHFA), they have stricter qualification requirements compared to conventional loans. Here’s what you’ll typically need to qualify:

1. Higher Credit Score

• Most lenders require a credit score of at least 700-720 for a jumbo loan.

• Some may allow scores as low as 680, but this often comes with higher interest rates.

2. Larger Down Payment

• While some jumbo loans allow for 10% down, most require 20% or more.

• A larger down payment reduces the lender’s risk and can help you secure better terms.

3. Lower Debt-to-Income Ratio (DTI)

• Most lenders require a debt-to-income ratio of 43% or lower, meaning your total monthly debt payments (including your mortgage) should not exceed 43% of your gross monthly income.

4. Strong Cash Reserves

• Lenders may require you to have 6-12 months of mortgage payments in savings after closing.

• These reserves show lenders that you have the financial cushion to cover payments in case of emergency.

5. Detailed Income and Asset Documentation

• You’ll need to provide extensive documentation, including tax returns, W-2s, bank statements indicating cash reserves, and investment account statements.

• Self-employed borrowers may need to provide additional proof of income, such as business tax returns.

Jumbo Loan Interest Rates & Terms

Many borrowers assume that jumbo loans always have higher interest rates than conventional loans, but that’s not always the case. In some instances, jumbo loans may even have comparable or lower rates than conforming loans, depending on market conditions.

Typical terms for jumbo loans include:

• Fixed-rate options (15, 20, or 30 years)

• Adjustable-rate mortgage (ARM) options (5/1, 7/1, or 10/1 ARMs)

At Peregrine Financial, our expert California mortgage lenders can educate you on jumbo loan limits, conventional mortgages, and even help you get a better idea of your estimated monthly payment.

Jumbo Loans vs. Conforming Loans: Key Differences

Feature	Jumbo Loan	Conforming Loan
Loan Limits	Exceeds $766,550 (or local limit)	Up to $766,550 (or local limit)
Credit Score	700+ typically required	620+ typically required
Down Payment	10-20% or more	As low as 3-5%
DTI Ratio	43% or lower preferred	Up to 50% sometimes allowed
Reserves	6-12 months of payments	2-3 months of payments

Pros and Cons of Jumbo Loans

Pros:

- Allows you to buy high-value homes without multiple loans- May have competitive interest rates- No private mortgage insurance (PMI) required if you put 20% down- Available for primary, secondary, and investment properties

Cons:

- Stricter qualification requirements- Higher down payment needed- More extensive documentation required- May have slightly higher interest rates than conforming loans

How to Apply for a Jumbo Loan

If you think a jumbo loan is the right fit for your home purchase, here’s how to get started:

1. Check Your Credit Score – Aim for 700 or higher to qualify for the best rates.

2. Determine Your Budget – Calculate your down payment, reserves, and income requirements.

3. Find a Lender Specializing in Jumbo Loans – Not all lenders offer jumbo loans, so work with one experienced in this type of mortgage.

4. Get Pre-Approved – A pre-approval letter will show sellers you’re a serious buyer.

5. Gather Your Documents – Have your tax returns, pay stubs, bank statements, and other financial records ready.

6. Start House Hunting – Once pre-approved, work with a real estate agent to find your ideal home.

7. Close on Your Home – After your loan is approved, complete the closing process and get your keys!

California Home Loan Experts

A jumbo loan is an excellent option for borrowers looking to purchase a high-priced home. While it has stricter qualification requirements than conforming loans, it offers flexibility, competitive rates, and the ability to finance luxury properties without needing multiple mortgages.

If you’re considering a jumbo loan, reach out to one of our expert mortgage lenders today.

Alex Shahin: ashahin@peregrinefin.com

Anna Shaterkin: ashaterkin@peregrinefin.com

Lynette Valencia: lvalencia@peregrinfin.com

HELOC Loan Explained

If you’re a homeowner looking to tap into the equity of your home, you may have come across the term HELOC. A Home Equity Line of Credit, or HELOC, is a powerful financial tool that allows you to borrow money against the value of your home, while maintaining flexibility in how you use the funds. As an expert mortgage lender, Peregrine Financial helps clients understand everything they need to know about HELOCs, including how they work, their benefits, and whether a home equity loan is the right choice.

What is a HELOC?

A HELOC is a revolving line of credit that is secured by your home. Unlike a traditional loan where you receive a lump sum upfront, a HELOC works more like a credit card, allowing you to borrow money as needed, up to a set limit. Because it's secured by your home’s equity, HELOCs typically offer lower interest rates compared to unsecured loans with a fixed interest rate.

How Does a HELOC Work?

A HELOC consists of two phases: the draw period and the repayment period.

During the draw period, which usually lasts 5 to 10 years, you can borrow money as needed up to your approved credit limit as an equity line of credit. You may only be required to make interest-only payments during this time, making it a flexible and affordable option for managing cash flow.

Once the draw period ends, the repayment period begins. This phase typically lasts 10 to 20 years, during which you can no longer borrow money, and you must begin repaying both principal and interest. The monthly payments will increase, so it’s essential to plan ahead on how you're going to pay interest.

Benefits of a HELOC

One of the biggest advantages of a HELOC is its flexibility. Home equity loans typically provide a one-time lump sum, but a HELOC allows you to borrow only what you need, when you need it. This makes it ideal for expenses like home renovations, emergency funds, or even debt consolidation.

Another benefit is the lower interest rate compared to credit cards and personal loans. Because a HELOC is secured by your home equity line, lenders typically offer competitive rates, making it a cost-effective borrowing option.

Additionally, some HELOCs offer interest-only payments during the draw period, which can help keep monthly expenses low while you manage your finances.

Potential Risks of a HELOC

While a HELOC can be a great financial tool, it’s important to understand the potential risks. Since your home is used as collateral, failing to make payments could result in foreclosure. It’s crucial to borrow responsibly and ensure you can manage repayment when the draw period ends.

Another consideration is that HELOCs typically have variable, and sometimes rising interest rates. This means that while initial rates may be low, they can fluctuate over time based on market conditions. If interest rates rise, your monthly payments could increase, making budgeting more challenging.

How to Qualify for a HELOC

To qualify for a HELOC, or revolving credit line, lenders will consider several factors, including:

• Your home’s equity: Most lenders require at least 15-20% equity in your home.

• Credit score: A higher credit score (typically 620 or above) can help you secure better interest rates.

• Debt-to-income ratio: Lenders want to ensure you can manage additional debt on top of existing financial obligations.

• Income and employment history: A stable income and employment history increase your chances of approval.

How to Use a HELOC Wisely

A HELOC can be a valuable financial tool as part of someone's primary mortgage:

• Home improvements: Investing in renovations can increase your home’s value.

• Debt consolidation: Paying off high-interest debt with a lower-rate HELOC can save money.

• Emergency expenses: Having access to funds for unexpected costs can provide peace of mind.

• Education expenses: A HELOC can be a lower-cost alternative to student loans.

Before taking out a HELOC, it’s essential to have a clear repayment plan in place. Borrow only what you need and ensure that you can afford payments when the draw period ends.

Best Mortgage Broker Near Me

A HELOC can be a smart way to leverage your home’s equity while maintaining financial flexibility. One of Santa Clarita's best mortgage brokers is Peregrine Financial; our team has decades of combined experience as HELOC lenders, securing mortgages and providing financial solutions for Californians.

If you’re considering a HELOC, reach out to one of our expert mortgage lenders today.

Alex Shahin: ashahin@peregrinefin.com

Anna Shaterkin: ashaterkin@peregrinefin.com

Lynette Valencia: lvalencia@peregrinfin.com