They’re Called Jumbo Loans? Worst. Name. Ever. // Today’s Mortgage News – Growella


It's Monday and let's do this I'm Dan on your inside team at Growella, bringing it on in to Omeletteville, and this is today's Mortgage Minute-and-a-Half

Like MC Escher, you got to have perspective The National Association of REALTORS published its most recent Pending Home Sales Index and the report shows the number of US

homes under contract dropping five percent in January as compared to the month prior, falling to levels not seen in three-and-a-half years The data fell well short of expectations and caused a bit of consternation, but this is one of those times when you should look past the headline numbers because when we look at January, there are a few big things that stick out The number of homes for sale, it ranked as its lowest ever for a January ever Mortgage rates made a sudden spike and climbed almost daily And the weather was completely awful everywhere east of the Mississippi

Even still, the Pending Home Sales Index registered a 1046 Now, a reading of one hundred is equal to "how the real estate market performed" in 2001, the year the index was launched And that year was a very strong year for real estate And, we're far above it

So, despite the January downturn, the real estate market remains strong and expected to stay that way Looks like mortgage rates are having a bad case of the Mondays Rates for conforming loans, FHA loans, VA loans and USDA — which are often the most cheap — are trending higher, away from today's buyers who're out shopping for new homes So what mortgage rate can you expect from your lender today? That's going to depend on your your credit score, your loan size where you live, and what type of mortgage you choose to use Your choice in closing costs will matter, too

Elect to pay points and you'll get a lower rate Take your lender's zero-closing cost option and your rates will be slightly up So is it better to pay points to get that lower rate? That's a choice you'll have to make and your lender can help you decide Good news for home buyers Mortgage rates aren't suffering through a case of the Mondays

Rates for conforming loans, FHA loans, VA loans and USDA — which are often the most cheap — are trending lower, helping today's buyers who're out shopping for new homes So what mortgage rate can you expect from your lender today? That's going to depend on your your credit score, your loan size where you live, and what type of mortgage you choose to use Your choice in closing costs will matter, too Elect to pay points and you'll get a lower rate Take your lender's zero-closing cost option and your rates will be slightly up

So is it better to pay points to get that lower rate? That's a choice you'll have to make and your lender can help you decide Did you know that you don't have to have a jumbo loan size to use a jumbo loan By definition, jumbo loans are loans that are too big to be backed by Fannie Mae or Freddie Mac, that exceed the local conforming mortgage loan limits But, much like Kleenex, Band-Aids, and Kitty Litter, the term "jumbo" has become generic and it now describes a whole group of loans that once were known as portfolio loans, as in "these are loans were not doing through the government, they're loans we're keeping in our own portfolio" And because portfolio loans aren't done through the government, lenders have freedom to make their own rules so they do

Loans for doctors that never need mortgage insurance, and loans for buyers who are the first in a condo building — these are just two examples And your loan can be any size It doesn't matter if you borrow three million dollars or a hundred thousand of them — you can use a jumbo loan to get it done So, if you've got a large or small loan, or a slightly bizarre scenario, talk to a lender and see what you can get done Or, use the link in the description to read up on some of today's most popular jumbo-like loans

Growella does mortgage news three times weekly, Share us with your office, leave a like, leave a comment, and remember to never match wits with a Sicilian when death is on the line [What, no joke today?] Well, I was going to tell a time travel joke but you guys didn't like it

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