Jumbo loans are the product used by people to buy homes that cost more than $417,000. If you are borrowing that kind of money, you’ll have to meet very specific eligibility criteria. And now more people are again applying for jumbo loans as the economy makes its slow recover. From NBC News.com,
Jumbo loans are returning to the mortgage market after almost disappearing entirely in the wake of the credit crisis of 2008 and the real estate meltdown. Most lenders stopped making new jumbo loans when the private secondary market dried up in the credit crunch.
Now the credit markets are comparatively stable. Lenders, who are only making these big loans to the most highly qualified borrowers, now see jumbos as a safe and profitable way to make money on their low-cost deposits. And secondary market investors are starting to regain their taste for these comparatively high-yielding loans.
We look at this as another positive sign that the economy is in recovery mode!
Leave a Reply