Let's work this out. First of all, you're going to have a hard time getting a non-conforming loan from here on out. That sets a maximum loan amount of $417K. Let's say your dream 4S ranch house costs $600K. That means you'll need to pony up $183K for a down payment. Okay, let's run some numbers:
Ok… I'm probably going to be the first to say this that's going against the grain. I keep seeing a lot of folks post something like "it's going to be hard to get a jumbo loan. Jumbo loans are going to vanish. etc.etc.etc." Pardon the this viewpoint, but aren't we just drinking the "doom and gloom" kool-aid that also portrayed in the media too much???
Yes, secondary markets are going to contract, but do we really expect that well doc'ed, good income, with sufficient down are really going to have "problems" finding financing beyond paying higher interest rates from a historic low? I don't think it's a question of finding financing. It a question of how much interest can the buyer afford.
Borat, I’m failing to see the math your posting here. You’re quoting rates from a jumbo, but you’re running the downpayment based on what it would take to do a conforming.
Don’t think conformings are at 7.5% Plus, there are other variables not being considered. That 186k earning 5% is also subject to income tax, among many others. Plus where are the costs for rent. From a purchase perspective, you’re missing property tax, insurance, mello-ruse, etc.
