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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
September 1, 2010
The stock market got into rally mode today to start the month of September with a bang. Surging by over 200 points in heavy trading as investors rallied into equity positions. The strong rally in the DOW follows a steady decline of the DOW in the past 60 days as the “double dip” recession...
August 27, 2010
The stock market finally caught a relief rally on Friday, as the DOW jumped well over 100 points on optimism from a reassuring speech from Fed Chairman Ben Bernanke. The DOW was able to get back above the 10,000 point market as investors took advantage of lower equity prices across the board on the market....
August 23, 2010
The markets strong start lost momentum over the course of trading on Monday and the market ended up dropping nearly forty points in trading. The dip follows a swing of nearly 100 points in light trading on Monday as investors pulled back when he market was up nearly fifty points when the market opened...
August 19, 2010
Jobs are certainly the largest component to any economy and has the potential to drive markets sharply. Today, we witnessed another example of the fallout from the employment sector as unemployment claims jumped to their highest levels in the last nine months, news that quickly led to a dramatic sell-off...