Forum
« Our recent experience (and rec. for mason / GC) Forced hot air heat not making it to the top floor »
December 11, 2008
Jumbo Mortgages?
Does anyone know anything about the actual availability of jumbo mortgages in the $1.5 - 2.0 m range? Who is actually writing them? What are current rates, downpayment requirements, debt ratio requirements?
Comments
Well anything over 450,000 dollars is considered a jumbo loan. Who is actually writting them? Not someone in their right state of mind that's for sure. Banks are not lending and if they do lend for homes they will only hand out money if they know customer is paying an honest price not the ballooned price.
Posted by: hannible at December 11, 2008 1:09 PM
hannible again is wrong on both points.
Posted by: daveinbedstuy at December 11, 2008 1:15 PM
Yup, wrong again!
Posted by: mopar at December 11, 2008 3:08 PM
Dave, did you know yuppies pay $500 each per month to split apartments with six other yuppie strangers in Carroll Gardens?
See Hannible's post "Affordable rents in Carroll Gardens" for more details.
Posted by: mopar at December 11, 2008 3:37 PM
Yuppies is not a word belonging to my vocabulary. When you say someone is wrong please list the correct points. I see that not only are you unemployed youare also not very well educated.
Posted by: hannible at December 11, 2008 4:28 PM
Hannible, the jumbo rate has changed. Banks are still lending.
In one of your posts about Carroll Gardens, you characterized the renters there as:
"Plus I would like to see alot of wannabe homeowners who don't even know how to change a light bulb leave the neighborhood first. and take your shappy high class coffee stores with you I make my own."
Did you not mean yuppies? What do you mean?
Posted by: mopar at December 11, 2008 5:13 PM
I mean idiots that do not know how to change a lightbulb and have to call a contractor to do that an pay a fortune to have this done should think about renting and not owning. I am ok with yuppies I have no problem with yuppies I have problems with homeowners that are now asking the government for a bailout on their mortgages. What is the new jumbo rate? Did you apply for one? Before the housing bust my bank told me I was good for 1.6 million. Well last Saturday they would not even lend me a quarter for the parking meter
Posted by: hannible at December 11, 2008 5:44 PM
May I be the first of what I am sure is a long line of Carroll Gardeners to encourage you to find another neighborhood that interests you. Someplace where the residents are consistently cranky and intolerant might suit you better.
Posted by: jfss at December 11, 2008 6:12 PM
Nah I like Carroll Gardens. I just will wait until I start seeing the forsale signs on both sides of the streets
Posted by: hannible at December 11, 2008 6:26 PM
I was quoted 6.5% for a mortgage on a two family townhouse earlier this week for a jumbo over $800,775 which is the new conforming loan amount for two families in NYC, I believe.
I was quoted 5.5% for the $800,775 alone.
My experience lately is that bank employees are more difficult to get on the phone and less eager to put together a mortgage offer than independent mortgage brokers -- just my two cents.
Posted by: IronBalls at December 11, 2008 8:25 PM
Iron Balls -- who were you working with? Were you happy with them? Was your mortgage over $1m? I haven't found any rate close to that.
Posted by: FinanceGuy at December 11, 2008 10:21 PM
The reason is that banks fear and know that the value of homes is going to fall and not grow for the next ten years.
Posted by: hannible at December 11, 2008 10:33 PM
Ironballs,
Thanks for that. Would you mind sharing a bit more info? Ballpark total amount? LTV etc? Don't want to pry but would be useful information.
Also, I'm wondering if you combine a high conforming loan with a heloc to get a smidge over the conforming amount? This kind of stuff used to be OK but guess these days not so much.
Posted by: Johnny at December 12, 2008 10:26 AM
I haven't found anyone willing to do a HELOC to let me keep the main mortgage below the conforming.
Over $1m, the quotes I'm getting on a 30 year fixed at par are about 8%, with at least 30% downpayment. Over $1.5m the rates go up again.
If anyone is offering better than that, I'd love to hear about it.
Posted by: FinanceGuy at December 12, 2008 11:01 AM
There must be some demand for Jumbo loans. I took one out in 2003 and was just notified that it's been sold for the third time.
Posted by: Boerum Hill at December 12, 2008 12:12 PM
I can do loan amount up to 2.5 million in Brooklyn. Rate will be an ARM 5yr 7yr or 10yr and you are going to need to put down more money
2.5 million 60% LTV
1.5 million 70% LTV
1 Million 75% LTV
The issue is that you are going to need a lot of reserves when you go that high on the loan amounts. For the large loan amounts you are going to need 25% of the loan amount in reserves after the closing.
They don't want people spending all they have to buy homes. They want you to have some cash left in the bank after you close.
These rates are also much lower than 8%
adahill@approvedfunding.com
Posted by: Adam Dahill at December 12, 2008 12:51 PM
Adam -- so no fixed rates at all? And 30% downpayment in addition to 25% reserves (so less than half financed)?
Posted by: FinanceGuy at December 12, 2008 3:13 PM
Sounds like you have a better chance and deal if you you go to Vinney "Knucklebreakers". I think he is alot more honest than most of your bankers too.
Posted by: hannible at December 12, 2008 5:20 PM
Curious, why no fixed rates on jumbo loans? Or is just that Adam doesn't do them, or the fixed rate is so high he's not quoting them? Thanks.
Posted by: mopar at December 12, 2008 5:35 PM
Finance Guy,
The fixed rate I was quoted was from one of the well know NYC mortgage brokers for a jumbo loan based on a down payment of 25%, excellent financials and credit score, and a loan amount of $1,100,000.
I was told that getting a second mortgage over the conforming amount was difficult if not impossible these days and that a traditional jumbo loan was the only to go.
I'm sorry, I'd rather not name the specific broker I spoke to, but if you shop around, I'm sure you'll speak to them too.
Posted by: IronBalls at December 13, 2008 10:38 AM
It's just the nature of the beast. Once you start getting into the mega jumbo sizes "most" I said MOST not all, banks don't offer a 30yr fixed rate. I guess they don't want to tie up that much money for that long of a time at a return that they can't guarantee will make them money 10yrs from now. You will also get the better Jumbo rates if you pay a "buydown" or points. I know everyone complains about paying points but the spread is huge right now. 1pt will buydown the rate almost .75% to rate on some products if not more. Banks are reluctant to pay premiums or "above par pricing" as they feel that they will not recoup that fee.
This is just an example of a product that has extremley agressive rates, not all products require 25% reserves. These rates are around 6% and less for the loan sizes we are talking.
I have a product that has a great 30yr fixed rate up to 3 million but it's not elligible in Brooklyn, Manhattan, Queens and the Bronx. I can use it in NJ, CT, Long Island, amd the lower Hudson Valley region such as Westchester, Putnam, Rockland ext...
Mopar- I'm not quoting any rates on the forum. There is a whole lot more to a mortgage that just the rate. A lot of these products have caveots and it wouldn't be fair just to quote rates blindly without speaking to someone first.
I you want to know the rates you are just going to have to contact me.
adahill@approvedfunding.com
Posted by: Adam Dahill at December 13, 2008 12:05 PM
Thanks, Adam, really interesting.
Posted by: mopar at December 13, 2008 10:38 PM
I think we have one of the best 30 year jumbo rates out there.
Here is what we can do for 1 unit jumbos:
75% up to 3M
80% up to 1.5M
85% up to $625,500
Loan above 1M require 12 month PITI reserves.
And our 30 year fixed rates are better than any of our ARMs.
Generally, 30 year fixed rates have been in the low-high 6% range depending on credit, down payment, and 1 point or 0 points.
I do not like to disclose rates in forums but you can feel free to email me your scenario.
sunny_hong@countrywide.com
Posted by: shong1 at December 14, 2008 1:37 AM
it's all fun until someone loses an eye...
The What
Someday this war is gonna end..
Posted by: what at December 14, 2008 5:02 PM
I still say Vinny "knucklebreakers" is a better choice and a more honest person.
Posted by: hannible at December 14, 2008 9:31 PM
Are you saying that I'm not honest? I'm sorry hannible but you have no grounds to insult me. I continue to give free advice on all topics mortgage without sugar coating anything. I think that is as honest as you are going to get.
Posted by: Adam Dahill at December 15, 2008 11:16 AM
Anyone does no income check mortgages?
joeny2mo@yahoo.com
Posted by: joeny2mo at December 15, 2008 5:49 PM
Anyone does no income check mortgages?
joeny2mo@yahoo.com
Posted by: joeny2mo at December 15, 2008 6:13 PM
Adam,
Come on, dude. There's nothing wrong with it, but you're not just giving "free advice."
You're clearly here to try and drum up some business in the slowest housing market in years.
Posted by: IronBalls at December 18, 2008 10:48 AM
Post a comment
Please be patient while your comment is published. It may take a moment.