Jumbo mortgages cost a little over 1 percentage over conforming financing as a result of the credit tightening going on in the lending industry. A year ago a buyer who wanted a jumbo mortgage (financing over 417K) would pay about 1/4% over the conforming loan amount (loans under 417K). During the next few weeks, if you purchase a Long listing, Long Mortgage will discount the first years’ interest rate by 1%. So don’t wait to buy; call me if you are interested in viewing homes for sale.
In the Foothills area, there are a fair amount of buyers who finance through jumbo loans since house prices are higher than the rest of Tucson. This increased percentage rate for Jumbo Mortgages — this weekend was just a little less than 8%— will likely have a little negative impact on the sale of houses that are list priced over $500,000. It may take longer to sell and it is likely to cause more concessions by the Sellers. On the other hand, for those buyers who are looking to originate mortgages of less than 417K (conforming loans), there is good news: rates have dropped. This weekend you can procure a fixed rate mortgage for 6.625%. And as mentioned above, for a very limited time only if you buy a Long listing and use a Long Mortgage Lender, the first year will be 1 percent less or 5.625% (this weekend rate– Keep in mind rates change daily.) Long Realty is working hard to keep our inventory moving and keep our clients happy.