Keller WIlliams Luxury Logo
Home » Better Financing for Luxury Homes

Better Financing for Luxury Homes

by | Apr 25, 2008 | Luxury Market | 0 comments

This is good news for those of you looking to buy a luxury homes this spring. Check out this article from Kimberly Blanton at the Boston Globe:

Fannie Mae and Freddie Mac agreed last Friday to buy more jumbo loans from major lenders, making it easier for borrowers to get these kinds of mortgages.

Freddie Mac said it expects to buy up to $15 billion of jumbo conforming loans from Wells Fargo & Co., Chase, Citi Bank, Washington Mutual, and other lenders.

None of the banks were able to provide rates for the jumbo conforming loans. But Tom Kelly, a spokesman for Chase, said the Freddie Mac agreement “is going to make more money available in high-cost markets and the rates are obviously going to be less” than they have been since February when Congress first raised the size of mortgages Freddie and Fannie are able to buy.

Since the increase, jumbo mortgages have been more than 2 percentage points higher than other conforming mortgages. Plus they have had stiffer requirements, including higher credit scores and bigger down payments.

“The idea is to provide more liquidity, to lower the rates, and provide more money from the investor side,” said Jon Skarin, director of federal policy for the Massachusetts Bankers Association. For the program to work, he said, rates “are going to have to come down significantly, and we’ll see.”

Recent Posts

It’s All About The Secret Sauce!

It’s All About The Secret Sauce!

A question came from a consumer who asked, “how we are selling so many properties, so quickly, and for top dollar?” My answer was, “it’s all in the secret sauce!” What I mean by that is it’s all in our system and people. We’ve created the system, tested the system,...

read more
Big Island Featured Restaurant & Activity for May

Big Island Featured Restaurant & Activity for May

Featured Activity: Hike the Pololū Valley Trail   Located at the end of the Akoni Pule Highway in North Kohala is the scenic Pololū Valley. This valley was once home to a community of taro farmers, but after the creation of the Kohala Ditch, which diverted much...

read more
March Market Statistics for the Kohala Coast

March Market Statistics for the Kohala Coast

Real estate activity was sluggish in the month of March with a slowdown in condominium sales; however, there was a small uptick in home sales. Kohanaiki led activity with the sale of four homes and two condominiums. Kūki`o followed with two home sales and one condo...

read more
Big Island Featured Restaurant & Activity for April

Big Island Featured Restaurant & Activity for April

Featured Activity: Kuleana Rum Works Mai Tais is one of Hawai`iʻ s iconic cocktails, but did you know Hawai`i Island is also home to Kuleana Rum Works, a company which crafts award-winning rum from the fresh juice of sugar cane grown on its farm in North Kohala? If...

read more
I’m the Short-Term Guy!

I’m the Short-Term Guy!

I took a phone call from a consumer this week and as we started the phone call, he said to me, “Hey, you’re the short-term guy”! At which I replied, “What?” He said, “Yeah, I watch all your YouTube videos on short term vacation rentals and they’re valuable...

read more

Recent Listings

Call Now