The jumbo mortgage won't get cheaper3 of 7The secondary market for jumbo mortgages froze in August 2007. Jumbo rates have been high since then.Without a secondary market, jumbos have been done the old-fashioned way: by banks that keep the loans on their books. Banks turn on and turn off jumbo availability like water from a faucet, says Brian Koss, executive vice president of Mortgage Network, a lender based in Danvers, Mass.He adds that the underwriting standards for jumbos are inconsistent, so it's hard to predict whether a given application will be approved.In late April, a bundle of 255 jumbo loans was securitized, under rapt attention from the mortgage world. If this securitization was the first of many, then jumbo rates are likely to narrow their gap above conforming rates. But it won't happen overnight. Related Articles:Buying your first homeFixing 3 FHA loan snags3 types of mortgage loansSelling in a soft marketRelated Links:7 keys to FBSO successPick a real estate agentClosing a home sale fastFight low home appraisal advertisement
The secondary market for jumbo mortgages froze in August 2007. Jumbo rates have been high since then.
Without a secondary market, jumbos have been done the old-fashioned way: by banks that keep the loans on their books. Banks turn on and turn off jumbo availability like water from a faucet, says Brian Koss, executive vice president of Mortgage Network, a lender based in Danvers, Mass.
He adds that the underwriting standards for jumbos are inconsistent, so it's hard to predict whether a given application will be approved.
In late April, a bundle of 255 jumbo loans was securitized, under rapt attention from the mortgage world. If this securitization was the first of many, then jumbo rates are likely to narrow their gap above conforming rates. But it won't happen overnight.
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