Homebuyers get Help with Higher-Value Properties

Jumbo loans are back! These super-sized home loans are gaining favor once again as one of the best ways for homebuyers to purchase higher-value properties.

‘‘Jumbo loans are loans that exceed the conforming loan limits, generally greater than $417,000,” explained Stacy Fifield, Senior VP and Chief Lending Officer at Travis Credit Union. “They may be used for purchases or refinances.”

Jumbo loans are residential mortgages that exceed the maximum loan amount that Freddie Mac or Fannie Mae will allow, commonly known as the “conforming limit.” This limit varies by location. In expensive markets such as Los Angeles, the conforming limit is more than $729,750. In Seattle, it is $567,500.

“Given the high value of real estate in California and specifically certain areas like Clayton, Concord, Walnut Creek, Napa, many loans fall into the jumbo area,” Fifield says. “Typically, jumbo borrowers are more affluent and have greater assets and higher paying jobs.”

Competitive rates

During the financial crisis jumbo loans were hard to obtain because there was no secondary market to sell them, as compared to conventional loans. As the housing market recovers and property values rise, so does the demand for these loans.

Currently, the jumbo market is very competitive, offering rates that are equal to or lower than conventional financing. These loan rates are almost always higher due to the large amount of money being invested for long periods of time.

Fifield said this is a good time for people to enter the housing market or to refinance their existing home. Waiting may price them out of the market or eliminate any potential savings through a refinance. “Rates are still at historically low levels and expected to go up as the year goes on,” she said. “Home prices are still below their previous highs and are expected to appreciate an average of 3% nationally in 2016 and likely more in our markets.”

Travis Credit Union offers 15- and 30-year jumbo loans with fixed- and adjustable rate-options. Loan amounts are available up to $3 million. Interest rates change daily but were as low as 3.892% APR* on March 3, 2016. Other things that make a Travis jumbo loan attractive are our low lender fees and easier qualification requirements. Plus, jumbo loans are serviced locally by the credit union itself and not sold to a third party.

If you’re thinking of buying or refinancing your home, our mortgage loan representatives can help you determine the best loan for you.

Call (707) 469-2000 or toll-free (888) 698-0000, Monday through Friday during regular business hours.

Visit our Home Loan Center at www.traviscu.org/real-estate

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*APR as low as 3.892% for 30 years, based on 80% loan-to-value or less. For $650,000 loan, payment would be $3,057. Rates as of 3/3/2016, subject to change daily until locked. Financing available up to $3 million for owner-occupied California primary residence properties only. Payment example does not include insurance or taxes. Property insurance required. Some restrictions may apply. If impound account for taxes and insurance is desired, you are responsible for those set-up amounts. Please consult your tax advisor regarding the deductibility of interest and charges. Offers cannot be combined with other discounts or promotions.

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