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Jumbo Loan Rates and LendersJumbo loans are mortgage loans that are not eligible to be sold to Fannie Mae or Freddie Mac. Jumbo loans are mortgage loans that exceed the conventional loan limit size, which was set at $417,000 for single family homes in the contiguous 48 states. The marketplace for jumbo loans changed dramatically over the past twelve months as the secondary marketplace for jumbo loans all but disappeared during the credit crunch. Jumbo loans have historically been packaged and sold as mortgage backed loan securities to investors on wall street. These investors have almost all stopped purchasing mortgage backed loan securities in this manner as home values in the U.S. have declined so agressively over the last 24 months. Consumers who are shopping for a jumbo mortgage loan today will need to begin their search for lenders much early and be prepared to pay a much higher premium with rates and fees than they may be eligible for with a conventional mortgage loan. Homeonwers who need a jumbo loan should contact banks that portfolio their mortgage loans (hold for investment) or local credit unions. In today’s uncertain market, most lenders have stopped issuing jumbo loans unless a borrower is able to fully document their income, assets and credit over a two year period. The underwriting process for a jumbo loan on a purchase or refinance transaction may also require the borrower or homeowner to pay for two seperate home appraisals. |
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Rates, News & Advice Articles
June 13, 2011
The stock market tried to mount a rally on Monday, but finished the day relatively flat, a growing signal that the pessimism in the market may be around to stay for the summer. The DOW was up almost 100 points in early trading action as investors were looking to buy into some bargains from the sell...
QRM Yet Another Federal Blunder In Fixing The Housing Market
QRM – Qualified Residential Mortgages is probably the dumbest idea the government has rolled out in the past 24 hours. An idea whose origination stems from the colossal collapse of the economy and U.S. housing markets would ensure the collapse of the American Real Estate Market. The simple economics...
June 4, 2011
The continued decline in stock prices, weakness in housing and the employment markets over the past sixty days has very few silver linings. The one area that has benefitted from the market changes is the mortgage market, where fixed home mortgage rates have continued to improve. Loan rates dropped to...
May 26, 2011
May has been a great month for the mortgage market as long term interest rates have moves substantially lower this month following a dip in bond yields. The ten year treasury bond move below 3.1 this week, over seventy basis points off of its high levels of the year. The correlation to fixed mortgage...