Reuters recently reported that jumbo mortgages are back, but they're still below 2007 levels. The revival in the luxury home sales market has been fueled in part by the resurgence in jumbo loans – typically a loan greater than $417,000.
In the wake of the credit crisis of 2008, jumbo loans had nearly disappeared. Now, lenders are offering these loans to very qualified borrowers at interest rates not much higher than conventional rates.
The Publisher of Inside Mortgage Finance, Guy Cecala, states “the jumbo market may fare better than the overall mortgage market in 2013.”
The revival of the jumbo mortgage market is a good thing for buyers and sellers of luxury homes. It widens the pool of potential buyers a seller can reach and the available homes a buyer can look at.
What do you think of the return of the jumbo loan? Tell us your thoughts below.