The stock-market dip is likely to keep interest rates on jumbo loans below 4% for a while longer, which also could make borrowing lar
ge sums more attractive.
Source: What’s Ahead for Jumbo-Loan Borrowers in 2016
Believe it or not, the market for jumbo loans is a good one. Lenders have some fantastic products to offer that can help put customers into a larger home or refinance their existing mortgage.
Jumbo borrowers have loans that exceed conforming limits of government-back loans, $417,000 in most places and $625,500 in some high-cost areas. The Federal Housing Finance Agency didn’t raise baseline limits last year because home prices haven’t returned to prerecession levels nationwide.
Per the WSJ report, unless the bottom falls out of the economy, jumbo lenders predict continued demand. Regional banks and nonbank lenders were able to expand their jumbo mortgage volume largely because of continued enthusiasm on the part of big banks to buy and hold them in portfolio.
Now might be a good time to consider moving up or refinancing your jumbo loan!
