There are sign that the banks are starting to lend to clients who are in need of JUMBO mortgages. Jumbo mortgages have been scarce as banks were scrambling for liquidity. But now, because of government bailout programs and the increase in refinancing, banks have found their sea legs and are starting to lend to the non-conforming rate customer.
This is great news for markets like Manhattan where the average sale price for a home still remains well above the $1,000,000 mark.
Bank of America has rolled out a new jumbo program, offering 30-year fixed-rate jumbo mortgages with rates in the 5+% range. "We decided it was time to really go after that market," says Vijay Lala, a product executive for the bank. (WSJ online) Experts are confident that many of the other "players" will follow suit.
In the LA Times, I found an article written for homeowners with tips on how to secure the lowest rates for a JUMBO loan; How to Lock in the Lowest Mortgage Rate in Today's Tough Market by Kathy Kristof.
In a related article from the NY Times, Muted Signs of Life in the Credit Markets , Jack Healy points out that people's confidence levels are growing. So if you are thinking of buying or refinancing, now may be the time while rates remain at historic lows and product is much more affordable.
