Jumbo Mortgages West Palm Beach

West Palm Beach is a good example of a real estate market that needs a good jumbo and super-jumbo loan. Here in Palm Beach County we have many customers that purchase amazing real estate and happen to be in a position to invest their money wisely and take advantage of the low interest rates currently available. 

I can help customers looking for larger mortgages all the way up to $3,000,000. It is actually an excellent time to be in the super jumbo mortgage market place. As you all know home prices have dropped significantly especially on the higher end. Light demand makes for some real bargains. The other amazing advantage that we have right now is amazing super jumbo interest rates. You will not find an amazing fixed rate but I do have excellent terms on low adjustable rate mortgages that are fixed for 3,5, or 7 years fixed and many of the sources offer an interest only feature that lowers the monthly obligation by about 12%.

Five years ago home values were 40% higher so whenever we were financing over the $417,000 loan amount we would look to a piggy-back second that enabled the customer to get his 90% financing without mortgage insurance. Since then lenders of second mortgages or home-equity lines of credit only lender to 70 or 80% loan to value so in many cases the second mortgage scenario doesn't work.

Fortunately for Jumbo customers margins and indexes are really low right now so I am able to put together some amazing jumbo and super jumbo pricing. Don't expect to get a fixed rate loan but I can get you great pricing on a 3/1, 5/1 or 7/1 Adjustable rate mortgage and like I said , some with an interest only feature.

Please see the graph below to see the typical spead between your conventional Fannie mae loan and a Jumbo or a Super-Jumbo. I have many local banks that are taking the jumbo market back so please give me a call to price out your loan 561-329-0075


Notice in the preceeding few years there has been more od a disparity between Conforming and Jumbo Fixed Rates

        Please see the following article written by Marc Jablon, Realtor

When I checked the multiple listings between West Palm Beach and Miami 2 days ago, there were more than 2,000 single family homes with asking prices of over $1million. If we add condominiums to those numbers, we’ll find at least a thousand more with asking prices of over $1million. But whatever the current asking prices are, they have already been reduced by 30-40% off their 2007 highs.

However, according to CNBC.com, South Florida is hardly alone in its mega dollar housing doldrums. Using highlights from 39 cities, CNBC paints a relatively bleak picture of the high end market. Only Houston at 3.2% and New Orleans at 3.4%, have seen improved overall housing prices since 2007, according to the National Association of Realtors.

The smallest drops in price since the plateau in real estate prices have been in Charlotte, North Carolina, and Omaha, Nebraska, which dropped only about 3%, while Phoenix has almost halved in value since 2007. It is worth noting that those cities whose values have dropped very little were not victims of the original run-up in prices. Cities where values have dropped precipitously also saw double housing inflation between 2003 and 2007.

Nonetheless, the million dollar homes in virtually every city in the nation are selling at large discounts and are remaining on the market for far longer than they did 2 years ago. An overwhelming reason for this drop in purchases is that jumbo mortgages (in amounts of more than $417,000) have become more expensive to carry and harder to fund. Also, many former millionaires have been affected by the economic crisis and have determined to purchase homes that serve as shelters, rather than as showcases.

In cities such as San Francisco, $1 million dollars in 2007 bought about 1150 square feet; now it buys an additional 400 feet. In Las Vegas, time on the market increased from 220 to more than 260 days, and the size of the house available for $1million has increased by 50% to 5400 square feet.

While square footage statistics and time on market vary from city to city, South Florida residents can take comfort that we’re not alone in being awash in pricey real estate. Million dollar homes are languishing all over the country, and values are down. In South Florida, homes listing for $1 million and more average well over 100 days on the market. One particular waterfront home has been waiting for a buyer for almost 4 years.

For those who are waiting to scoop up expensive real estate in South Florida, this is an excellent time to purchase. While homes in the $400,000 and under range are selling at close to asking price, the million dollar mansions, often with water views and dock space, are showing discounts of up to 30% off their current asking prices.

Written by Marc Jablon, Realty Associates
marcjablon@yahoo.com / 561 / 213 – 6139


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