Fires of Heaven Guild Message Board - View Single Post - Jumbo mortgages (part of stimulus package)

Cynno · 02-08-2008, 01:41 AM

The change in jumbo loans is saying that you can now use conventional loan pricing on values up to 729,750, which is great for people in areas such as Southern California.

I don't see it effecting the current market crisis at all as the difference in rates was usually around a half a percentage point. Which obviously is a lot of money when considering you pay it over 30 years, but usually wasn't a deal breaker for the people buying the high priced homes.

To reiterate, this will not stop the correction of housing prices.

Also a little bit more information. Loans are no longer just looking at your credit score when deciding to lend to you. They are now taking a more all encompassing look at the borrower as a whole. So, just because your running that 715 credit score, doesn't mean you'll get the loan, but a guy with a great story and a 625, could get the loan.

02-08-2008, 01:41 AM	#2 (permalink)
Cynno Registered User Join Date: Jun 2005 Posts: 609 -23 Internets	The change in jumbo loans is saying that you can now use conventional loan pricing on values up to 729,750, which is great for people in areas such as Southern California. I don't see it effecting the current market crisis at all as the difference in rates was usually around a half a percentage point. Which obviously is a lot of money when considering you pay it over 30 years, but usually wasn't a deal breaker for the people buying the high priced homes. To reiterate, this will not stop the correction of housing prices. Also a little bit more information. Loans are no longer just looking at your credit score when deciding to lend to you. They are now taking a more all encompassing look at the borrower as a whole. So, just because your running that 715 credit score, doesn't mean you'll get the loan, but a guy with a great story and a 625, could get the loan. Last edited by Cynno : 02-08-2008 at 01:59 AM.