This Week’s Mortgage News
Buyers using a jumbo mortgage might encounter a pleasant surprise: Mortgage rates for jumbo mortgages – loans over $417,000 in most of the United States and over $625,500 in pricier areas – are now at, or below, rates for conventional mortgages.
This compares to recent years when it was standard for mortgage rates for jumbo financing to be higher than comparable conventional loans. In fact, in 2009, jumbo rates were almost 2 percentage points higher, making these home purchases less affordable.
The lower costs and improved availability of jumbo financing can be attributed to recent changes in the home financing market, including the loosening of the secondary market for jumbo loans and the implementation of guidelines that exempt jumbo mortgages.
In addition to high-end homebuyers, this recent change is also good for the real estate market as a whole. Buyers taking out jumbo loans are usually move-up buyers, meaning the home they are selling is now available to a first-time buyer or other consumers seeking a home at a lower price point.
Featured Product: 10% Down Jumbo Loan
Weichert Financial Services can offer qualified borrowers a fixed-rate jumbo mortgage loan of between $417,001 and $850,000 with only as little as a 10% downpayment. This opens a window of opportunity for buyers able to afford the monthly payments and upkeep on a home, but who have not yet been able to save enough to make the typical 20% downpayment.
Contact Jennifer to be connected with someone who can help.
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