Jumbo Mortgages Getting Cheaper and Easier
In recent months, it has become cheaper and easier for individuals to take out jumbo mortgages – loans of $417,000 or more (or $625,000-plus in more expensive markets).
Whereas a 20% down payment and a 700 credit score used to be required on all jumbo loans, some lenders are now accepting credit scores as low as 650 and just 10% down, even foregoing mortgage insurance.
“That was unheard of 12 months ago,” John Walsh, owner of Total Mortgage Service, told CNN.
Additionally, interest rates on these loans currently average 4.24%, as compared to 4.36% on a conventional 30-year fixed mortgage.
Image via flickr/Simon Cunningham