My $1.8M Jumbo Loan Journey: What 710 Credit Really Cost Me vs. Waiting for 740

When my wife and I started looking at homes in Seattle’s Eastside suburbs in January 2024, we quickly realized that $1.8 million was the entry point for the neighborhoods with good schools we wanted.

Our situation:

• Income: $385,000 combined (tech industry, both W-2 employees)
• Credit scores: 710 (me), 728 (wife)—lenders use lower score for qualification
• Savings: $320,000 (15% down + closing costs + reserves)
• Current housing: Renting 2BR apartment at $3,200/month
• Debt: $1,850/month (two car payments $1,200, student loans $650)

The key question: Should we buy now with my 710 credit score, or wait 4-6 months to improve my score to 740+ for better jumbo rates?

What our jumbo specialist told us: “You qualify at 710, but improving to 740 would save you about $375/month.”

What we didn’t fully understand: That $375/month difference equals $22,500 over 5 years and $135,000 over the full 30-year loan.

Here’s the complete analysis of our decision—what we paid to buy at 710 credit, what we would’ve paid if we’d waited to improve to 740, and whether buying immediately or waiting 6 months would’ve been smarter financially.

Our Jumbo Qualification at 710 Credit Score

What We Qualified For

My credit score: 710 (middle score from 708, 710, 715 across three bureaus)

Wife’s credit score: 728 (middle score from 725, 728, 732)

Lender used my lower 710 score for qualification and rate pricing.

Jumbo approval: Yes, with standard terms

Down payment required: 15% minimum ($270,000 on $1.8M purchase)—some lenders wanted 20% at 710 credit, but we found portfolio lender accepting 15% with compensating factors.

Our compensating factors:

• High income ($385,000 combined, 32% debt-to-income ratio)
• 8 months reserves after down payment ($48,000 liquid assets remaining)
• 5+ years stable employment (both at same employers since 2019)
• Low debt relative to income (under 35% DTI including new mortgage)

Interest rate quoted: 7.00% (compared to 6.75% for 720-739 credit, 6.625% for 740+ credit)

Home we were buying: $1,800,000 purchase price in Sammamish, WA

Jumbo loan details:

• Purchase price: $1,800,000
• Down payment (15%): $270,000
• Loan amount: $1,530,000
• Interest rate: 7.00%
• Monthly P&I: $10,182
• Property taxes: $1,575/month (0.87% annual rate)
• Homeowners insurance: $285/month
• HOA fees: $125/month
• Total monthly payment: $12,167

No PMI required (jumbo loans with 15%+ down typically don’t require mortgage insurance)

Cash needed at closing: $270,000 down + $38,500 closing costs = $308,500

Reserves remaining: $320,000 saved - $308,500 closing = $11,500 cash + $36,500 in retirement we could access = $48,000 total (about 4 months reserves)

Why We Wanted to Buy Immediately

Reason 1: Seattle market was appreciating rapidly

Eastside Seattle suburbs were seeing 0.75-1.0% monthly appreciation (9-12% annually in early 2024).

If we waited 6 months to improve credit, our $1.8M home could easily be $1.89M-$1.92M.

Extra cost if prices rose 5%: $90,000-$120,000 higher purchase price

Reason 2: Rent felt wasteful at our income level

Paying $3,200/month rent ($38,400/year) felt particularly wasteful when we could afford to buy and start building equity.

Reason 3: We’d been saving for years

We’d saved $320,000 over 6 years specifically for this purchase. Waiting another 6 months felt like we were delaying the payoff for our sacrifices.

Reason 4: Interest rates might rise

In early 2024, there was uncertainty about Fed rate policy. Waiting 6 months risked higher rates offsetting any improvement from better credit scores.

My decision: Buy now at 710 credit and accept the 7.00% rate.

What We Actually Paid (710 Credit Score, 7.00% Rate)

First-Year Costs

Closing costs: $308,500 (down payment + closing + prepaid items)

Monthly payment: $12,167 ($10,182 P&I + $1,575 taxes + $285 insurance + $125 HOA)

First-year total housing cost: $308,500 closing + ($12,167 × 12 months) = $454,504

If we’d kept renting: $3,200 × 12 = $38,400

Extra cost Year 1 (buying vs. renting): $454,504 - $38,400 = $416,104 more to own

But: We built equity:

• Principal paydown Year 1: $31,200
• Home appreciation (5% first year): $90,000
• Total equity: $121,200

Net cost Year 1 after equity: $416,104 - $121,200 = $294,904 net cost to own vs. rent

Yes, owning was more expensive in Year 1, but we were building substantial equity in an appreciating market.

Five-Year Costs (710 Credit, 7.00% Rate)

Total paid over 5 years:

• Principal and interest: $10,182 × 60 = $610,920
• Property taxes: $1,575 × 60 = $94,500
• Insurance: $285 × 60 = $17,100
• HOA: $125 × 60 = $7,500
• Total payments: $730,020

Add closing costs: $308,500

Total invested: $1,038,520

Equity built over 5 years:

• Principal paydown: $173,400 (paid balance from $1,530,000 to $1,356,600)
• Home appreciation (25% over 5 years): $450,000 (home now worth $2,250,000)
• Total equity: $623,400

Net cost after equity: $1,038,520 - $623,400 = $415,120 net cost over 5 years

If we’d kept renting 5 years: $3,200 × 12 = $38,400/year increasing 4% annually = $208,450 total (zero equity)

Buying vs. renting comparison: We spent $415,120 net to own vs. $208,450 to rent, but we have $623,400 equity.

True wealth creation: $623,400 equity - $206,670 extra spent vs. rent = $416,730 net wealth increase

What We Would’ve Paid If We’d Improved My Score to 740 (6.625% Rate)

The 6-Month Credit Improvement Plan

Starting score: 710

Goal score: 740 (30-point improvement in 6 months)

Strategy 1: Pay down credit cards

I had $8,500 balance across three cards with $22,000 total limits = 39% utilization.

Goal: Get under 10% utilization (under $2,200 balance)

Required paydown: $6,300

Plan: Pay off in full immediately (we had savings)

Impact: 39% to 10% utilization = 15-25 point improvement in 60-90 days

Strategy 2: Time and payment history

Continue perfect payment history for 6 months—adds 5-10 points through aging and consistency.

Strategy 3: Dispute credit report error

Found old medical collection ($285) from 2019 that should’ve fallen off—disputed and had removed.

Impact: 8-12 points

Total potential improvement: 15-25 (utilization) + 5-10 (time/history) + 8-12 (dispute) = 28-47 points

New score projection: 710 + 30 = 740 (achievable in 6 months)

Cost of Waiting 6 Months

Extra rent (Feb-July 2024): $3,200 × 6 = $19,200

Home price appreciation: $1.8M × 5% = $90,000 (conservative 5% appreciation during 6-month wait)

Total delay cost: $19,200 rent + $90,000 appreciation = $109,200

Down payment on higher purchase price: $1,890,000 × 15% = $283,500 (vs. $270,000 at $1.8M price)

Extra down payment needed: $13,500

What We Would’ve Paid at 740 Credit Score (6.625% Rate)

Home purchase price: $1,890,000 (after 5% appreciation during 6-month wait)

Jumbo loan details:

• Purchase price: $1,890,000
• Down payment (15%): $283,500
• Loan amount: $1,606,500
• Interest rate: 6.625% (vs. 7.00%)
• Monthly P&I: $10,286 (vs. $10,182—actually slightly higher due to larger loan amount)
• Property taxes: $1,654/month (higher due to higher price)
• Insurance: $295/month
• HOA: $125/month
• Total monthly payment: $12,360 (vs. $12,167 at 710 credit)

Wait, the payment went UP despite the lower rate?

Yes, because the $90,000 higher purchase price and $76,500 larger loan amount offset the 0.375% rate improvement.

Five-Year Cost Comparison: 710 Score vs. 740 Score

Option 1: Buy at 710 score (7.00% rate, $1.8M price)

• Total payments (5 years): $730,020
• Closing costs: $308,500
• Total invested: $1,038,520
• Equity built: $623,400
• Net cost: $415,120

Option 2: Wait 6 months, buy at 740 score (6.625% rate, $1.89M price)

• Extra rent while waiting: $19,200
• Total payments (5 years): $742,200 (higher despite lower rate due to larger loan)
• Closing costs: $323,250 (higher due to larger down payment)
• Total invested: $1,084,650
• Equity built: $660,900 (higher due to higher purchase price)
• Net cost: $423,750

Net difference: $423,750 (wait for 740) - $415,120 (buy at 710) = $8,630 more expensive to wait

But the higher purchase price created more equity: $660,900 (at 740) - $623,400 (at 710) = $37,500 more equity

True financial comparison: $37,500 extra equity - $8,630 extra cost = $28,870 better off waiting

Wait—So We Should’ve Waited?

Not so fast. The analysis above assumes 5% appreciation during the 6-month wait. But Seattle was appreciating faster than that—closer to 8-10% in early 2024.

If appreciation was 8% during our 6-month wait:

• Purchase price would’ve been $1,944,000 (not $1,890,000)
• Down payment: $291,600
• Loan amount: $1,652,400
• Monthly payment at 6.625%: $12,558
• Five-year total cost would’ve been $1,124,850

In that scenario, buying at 710 saved us $86,330 over 5 years.

The key variable: Market appreciation rate during the waiting period.

What I Learned: The Jumbo Credit Score Break-Even Analysis

When Buying at 710 Makes Sense

✅ Market is appreciating 0.75%+ per month (9%+ annually)
✅ You have strong compensating factors (high income, deep reserves, low DTI)
✅ You’re confident you can refinance in 2-4 years when rates drop or credit improves
✅ You’re currently renting and rates are increasing (our rent went up 6% at renewal)
✅ Interest rates are stable or rising (waiting risks higher base rates)

In our case: Seattle’s rapid appreciation made buying at 710 the right choice—we locked in $1.8M price instead of $1.94M+.

When Waiting to Improve Credit Makes Sense

✅ Market is stable or declining (0-2% annual appreciation)
✅ You can improve 30+ points in 3-4 months (high utilization to pay down, errors to fix)
✅ Interest rates are declining (Fed cutting rates = lower jumbo rates ahead)
✅ You’re close to 720 or 740 threshold (just 10-15 points away)
✅ You already own and aren’t paying rent (no opportunity cost of housing)

The Jumbo Credit Score Sweet Spots

680-699: Some jumbo lenders accept but require 20-25% down. If you can improve to 700+ in 3-4 months, strongly consider waiting.

700-719: Qualifies for standard jumbo at 15-20% down, but rates are 0.25-0.50% higher than 740+ tier. Analyze market appreciation vs. rate savings.

720-739: Good jumbo rates (within 0.125-0.25% of best pricing). Marginal benefit to improving to 740+ unless it’s quick/easy.

740+: Best jumbo rates available. No need to wait for higher score—minimal rate improvement beyond this tier.

My 710 score was in the middle tier—good enough to qualify with strong compensating factors, but not good enough for best pricing.

Our Refinance Plan

Current situation (18 months later):

• My credit score: 748 (improved from 710—paid off cards, perfect payment history, time)
• Home value: $2,160,000 (20% appreciation since purchase)
• Loan balance: $1,478,200 (paid down $51,800)
• Equity: $681,800 (31.5%)

Refinance options we’re considering:

Option 1: Rate-and-term refinance if rates drop

If jumbo rates fall to 6.00-6.25% range, we’ll refinance to lower payment and save $200-400/month.

Option 2: Cash-out refinance for investment property

With $681,800 equity, we could do cash-out refinance pulling $200,000 for down payment on investment property while keeping 75% LTV.

Projected cash-out refinance:

• Home value: $2,160,000
• New loan (75% LTV): $1,620,000
• Pay off current loan: $1,478,200
• Cash out: $141,800 (after closing costs, roughly $130,000 net)

We could use that $130,000 as 20% down payment on $650,000 investment property.

Our plan: Monitor rates through 2025-2026. If rates drop to 6.00% or below, refinance to lower payment. If rates stay elevated, hold current loan and consider cash-out refi for investment property in 2026.

The Bottom Line: Should You Buy at Lower Jumbo Credit or Wait?

We bought at 710 credit score and locked in $1.8M purchase price.

If we’d waited 6 months for 740 credit, we would’ve paid $1.89M-$1.94M due to rapid Seattle appreciation—costing us $90,000-$140,000 extra despite the 0.375% rate improvement.

Our advice:

Buy Now at 700-719 Credit If:

✅ Market appreciating 0.75%+ per month (9%+ annually)
✅ You have strong compensating factors (high income, reserves, low DTI under 40%)
✅ You’re paying high rent ($2,500+/month)
✅ You’re confident in refinancing ability in 2-4 years
✅ Interest rates are stable or rising

Wait to Improve to 740+ If:

✅ Market is stable (under 5% annual appreciation)
✅ You can improve 20-30 points in 3-4 months (high utilization, errors to fix)
✅ Interest rates are declining (Fed cutting)
✅ You’re very close to 740 (currently 725-735)
✅ You already own and aren’t paying rent

Check your real FICO credit score to see which jumbo tier you qualify for—and understand that middle score (not highest score) determines your rate.

Connect with jumbo loan specialists who can:

• Calculate exact rate at your current credit vs. improved score
• Analyze local market appreciation trends
• Model break-even scenarios for buying now vs. waiting
• Provide targeted credit improvement strategies if waiting makes financial sense

For us, buying at 710 was absolutely the right decision—we locked in a $1.8M price that’s now worth $2.16M, and we’re building massive equity in one of the country’s strongest housing markets.

But every market and situation is different. Run your numbers before deciding.