We've had some decent economic news coming in, so as the stock market has done better it's pushed up mortgage rates. The upward rise has not been dramaticthough and made most of the movement the last two weeks of the month.
Of special concern is the Jumbo mortgage rates. While they've been hovering the the low to mid 7% range since last August, Jumbo mortgage rates increased to the high 8%. That is with no points, but now many lenders' Jumbo rates are 9% and requiring 3 discount points! This is a huge jump, and is going to put serious pressure on those homes that require Jumbo loans.
*Please remember that the conforming limit is $417,000 but that is for the first loan amount only. It is not the purchase price, nor the first and second loans combined.
So when buying a home over $440,000 it's definately worth it to make the first loan amount less than $417,000 through a combination of down payment and a second lien.
Monday, June 2, 2008
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