Many lenders have re entered the high end mortgage market in the last few months offering affordable jumbo loans for upscale properties. The high end market like the Ulster county real estate market has showed an increase in activity this past spring and summer mainly due to jumbo rates falling to new five year lows. The fall in jumbo rates has given new hope to many of the Ulster county real estate property owners who have been unable to sell their homes in the last several years. Suddenly many buyers can afford properties which were out of their price range due to the drop in rates.
Just a year ago jumbo loans went for nearly 7 percent and they were hard to get even at that rate. Tougher lending standards that often included down payments as high as 20 to 40 percent made it tough for many buyers. There were few lenders offering mortgage loans over the Fannie Mae and Freddie Mac conforming loan limits. Today the jumbo interest rates have fallen significantly for both 15 year and 30 year loans.
The lower rates have certainly contributed to turning around high end home sales in the Hudson Valley real estate market, and markets across the nation starting this past spring and summer. The lenders strict underwriting guidelines still make it tough on many borrowers, but the lower rates on jumbo mortgages are helping to breathe new life into the upper end home market.
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Taft Street Realty, Inc.