Carl and Anna Hudson decided to work with Pinnacle on their mortgage when they built their 10,000-square-foot dream home in Lebanon, Tenn. They chose an in-house jumbo loan, because the amount they were borrowing was above the limit for a loan that conforms to government lending limit guidelines.
“It was a great product and blew everybody out of the water with rates,” Anna Hudson said.
In fall of 2011, the Hudsons wanted to take advantage of low mortgage interest rates by refinancing. They liquidated some assets so they could restructure their loan to a “417,” which stands for the maximum amount ($417,000) considered to be a “conforming” loan. Rates for conforming loans are typically lower than for jumbo loans.
Anna was on paid maternity leave when the Hudsons returned to Pinnacle to refinance. She decided to take an extended leave, so the income structure for the loan needed to be changed to include only Carl’s.
Further complicating matters, the couple had a home equity line of credit with another bank. The second mortgage had to be subordinated in order for the refinance to go through. Working with the other bank to subordinate the second mortgage alone took more than 50 days.