Refinance Mortgage HQ » jumbo loans

High End Homes Struggle on Listing Market

admin — Sat, 11 Jul 2009 20:16:54 +0000

High priced home over seven figures – $1 million or more are struggling to be sold. San Joaquin County has seen these million dollar homes fall 50% in price since the real estate bubble, and first time buyers are not ready for the high end real estate market. Also, jumbo loans are much more expensive and harder to secure.

Zillow.com prices these homes too low, thus creating an unusual dilemma where the buyers expect a much lower price and the sellers expecting a price according to the actual worth. The conditions create an illiquid market for the high end homes.

http://www.recordnet.com/apps/pbcs.dll/article?AID=/20090711/A_NEWS/907110323

Luxury Home Market Suffers

admin — Wed, 08 Jul 2009 04:05:27 +0000

The luxury home market faces the same mortgage crisis as everyone else. Homes priced over a million dollars could sit on the market for months without bids as securing a jumbo loan is even harder because of the higher risk that lender have to take as it must remain on the company books, and thus tack on a higher interest rate. A 30 year jumbo loan carries a 6.91% compared to the 5.7% on a regular 30 year home loan.

If you ever in the market for a free Mercedes Benz with a home, simply pony up $800,000.

http://www.usatoday.com/money/economy/housing/2009-07-07-luxury-homes_N.htm

Mortgage Rates at 5%, Not Jumbos

admin — Tue, 07 Jul 2009 03:47:00 +0000

Mortgage rates have improved to the low 5% range to help jump start the refinancing and housing markets. However, jumbo loans are 2% higher because of the higher risk. Underwriters are fearful of approving jumbo loans at the risk of losing their jobs.

http://www.examiner.com/x-15861-LA-Mortgage-Industry-Examiner~y2009m7d6-Mortgage-Rate-News-Mortgage-Rates-Improve-but-Underwriters-are-Scared-to-Approve-Jumbo-Mortgages