According to CNN Money this week, “For months, lenders of jumbo mortgages have been charging interest rates that are lower than what average borrowers pay.” In fact last week the interest rate for Jumbo Loans compared to a conventional 30-year, fixed rate mortgage, was just .12% LOWER! That means mortgages which are $417,000 or more ($625,500 in higher priced markets) have lower interest rates than the median priced homes.
But that’s not all!
Some Jumbo Loan lenders are reducing the required down payments less than the usual 20% previously required – even as low as 10% down and not even requiring PMI (private mortgage insurance)!
And it even get better! Generally Luxury Home borrowers who were going for Jumbo Loans were required to have at least a 700 credit score or better; however, now some lenders are lowering the credit score limits to 650 or better.
So why the big change?
According to Tom Wind, “Big loan borrowers have better track records when it comes to repaying their loans and they default at a much lower rate.” And with the Luxury Housing market moving so well, it only makes sense to accommodate the market.
Whether you are looking for a Luxury Home, vacation home or 2nd home in Northern Utah, enjoy the personal and professional service we provide. We listen carefully to all your needs, allowing me to quickly zero in on your preferences, saving you precious time. Buying will be fun, enjoyable, and easy!