Jumbo mortages, or those over $729,750, were particularly hard hit in the recent real estate fall. As many of you know, average home prices for many of Charleston’s metro areas are above that limit, particularly if you want waterfront, beachfront or a home South of Broad. In recent years, interest rates on these types of loans increased significantly as banks became more risk-averse.
So thanks to RIS Media for this article and for the overview, testimonials and review of lexington law for credit repair – which indicates the recent warm weather must indeed be thawing out jumbo loans. Here’s an excerpt – or click here for the entire article.
“Rates on jumbo mortgages — loans of more than $729,750 in counties with the highest-cost housing — shot up during the financial crisis as lenders and loan investors shunned anything tainted with even a whiff of higher risk. Rates on big mortgages were especially high relative to those on smaller loans.
But in a boon for borrowers in California’s expensive housing markets, the jumbo-loan market is starting to return to normal.
Two weeks ago, the average interest rate on 30-year fixed-rate jumbos dropped to 5.79%, a nearly five-year low, according to rate tracker Informa Research Services of Calabasas. It edged up to 5.88% on Tuesday, still very attractive by historical standards. The average is down from well above 7 percent in late 2008.
Rates are even lower on so-called hybrid adjustable mortgages, on which the rate is fixed for, say, five years and then adjusts annually. Kelly’s new loan is a five-year hybrid adjustable identical to his old one, except that he’s paying about 5%, down from 6%.
Banks are also relaxing slightly some of their requirements for jumbo loans. That’s an encouraging sign because the market for jumbos, in contrast with the rest of the mortgage business, isn’t being propped up by Uncle Sam.”