Did Jumbo loan change drive up home prices 10% today?

[equalizer]

Now you can pay 6% instead of 7% for jumbo

Monthly payment: 30 Years
Interest rate: 6.000%
Loan amount: $ 700,000.00
$ 4,196.85 a month

Result:
Monthly payment: 30 Years
Interest rate: 7.000%
Loan amount: $ 700,000.00
$ 4,657.12 a month

$450 free money, that translates to almost $70,000.
Great idea for NAR ad.

So did home prices go up 10% today and/or are there multiple offers for great homes today?

[Bugs]

Inasmuch as less than 7% of the households in SD county can swing a $4,800 monthly PITI payment I’m thinking the lighter interest load on jumbos is basically meaningless to pricing. Bear in mind, the logical alternative to a $700k home is the $600k home located next door that’s in foreclosure. It’s in foreclosure because it’s borrower could never afford the 5.5% fixed rate that was in effect when he bought, much less the 6% rate you’re talking about now, two years later.

[Bugs]

Inasmuch as less than 7% of the households in SD county can swing a $4,800 monthly PITI payment I’m thinking the lighter interest load on jumbos is basically meaningless to pricing. Bear in mind, the logical alternative to a $700k home is the $600k home located next door that’s in foreclosure. It’s in foreclosure because it’s borrower could never afford the 5.5% fixed rate that was in effect when he bought, much less the 6% rate you’re talking about now, two years later.

[Bugs]

Inasmuch as less than 7% of the households in SD county can swing a $4,800 monthly PITI payment I’m thinking the lighter interest load on jumbos is basically meaningless to pricing. Bear in mind, the logical alternative to a $700k home is the $600k home located next door that’s in foreclosure. It’s in foreclosure because it’s borrower could never afford the 5.5% fixed rate that was in effect when he bought, much less the 6% rate you’re talking about now, two years later.

[Bugs]

Inasmuch as less than 7% of the households in SD county can swing a $4,800 monthly PITI payment I’m thinking the lighter interest load on jumbos is basically meaningless to pricing. Bear in mind, the logical alternative to a $700k home is the $600k home located next door that’s in foreclosure. It’s in foreclosure because it’s borrower could never afford the 5.5% fixed rate that was in effect when he bought, much less the 6% rate you’re talking about now, two years later.

[Bugs]

Inasmuch as less than 7% of the households in SD county can swing a $4,800 monthly PITI payment I’m thinking the lighter interest load on jumbos is basically meaningless to pricing. Bear in mind, the logical alternative to a $700k home is the $600k home located next door that’s in foreclosure. It’s in foreclosure because it’s borrower could never afford the 5.5% fixed rate that was in effect when he bought, much less the 6% rate you’re talking about now, two years later.

[kev374]

I talked to a mortgage broker a few days ago about this limit increase and he says that is all hogwash since it doesn’t matter if they increase the limit to 5 billion dollars! He said the underwriting guidelines have changed and nobody can qualify with stated income loans anymore and a downpayment is needed. So the limit is pointless if nobody qualifies!

[kev374]

I talked to a mortgage broker a few days ago about this limit increase and he says that is all hogwash since it doesn’t matter if they increase the limit to 5 billion dollars! He said the underwriting guidelines have changed and nobody can qualify with stated income loans anymore and a downpayment is needed. So the limit is pointless if nobody qualifies!

[kev374]

I talked to a mortgage broker a few days ago about this limit increase and he says that is all hogwash since it doesn’t matter if they increase the limit to 5 billion dollars! He said the underwriting guidelines have changed and nobody can qualify with stated income loans anymore and a downpayment is needed. So the limit is pointless if nobody qualifies!

[kev374]

I talked to a mortgage broker a few days ago about this limit increase and he says that is all hogwash since it doesn’t matter if they increase the limit to 5 billion dollars! He said the underwriting guidelines have changed and nobody can qualify with stated income loans anymore and a downpayment is needed. So the limit is pointless if nobody qualifies!

[kev374]

I talked to a mortgage broker a few days ago about this limit increase and he says that is all hogwash since it doesn’t matter if they increase the limit to 5 billion dollars! He said the underwriting guidelines have changed and nobody can qualify with stated income loans anymore and a downpayment is needed. So the limit is pointless if nobody qualifies!

[Eugene]

I don’t think you can get those loans yet.

[Eugene]

I don’t think you can get those loans yet.

[Eugene]

I don’t think you can get those loans yet.

[Eugene]

I don’t think you can get those loans yet.

[Author]

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