Summit County High-Cost Max Loan Amounts to Decrease on October 1st, 2011

Summit County High-Cost Max Loan Amounts to Decrease on October 1st, 2011

It’s likely many mountain homeowners haven’t heard that the high-cost maximum loan amounts as defined by FNMA & FHMLC are going down. Currently, borrowers can finance up to $729,750 and still qualify for the conforming conventional interest rate in some areas of the country. Loan amounts above the maximum are subject to higher “Jumbo” mortgage pricing. With the recent fall in home prices and the higher profitability of Jumbo loans for mortgage banks (higher spreads), October 1st brings the first decrease in the maximum loan amounts since I’ve been in business as a mortgage originator (1993). The maximum loan at each of the three federal mortgage giants will fall to $625,500. For Coloradoans, the counties affected are Summit, San Miguel, Routt, Pitkin, Lake, Eagle & Boulder. Word on the street is that housing and realty lobbies are pushing for a continuation of the $729,750 high-cost area maximum, but banks don’t appear to be along for the ride. For more information […]

Summit County, Colorado Residents Get Special Treatment From Lenders

Did you know that Summit County, Colorado home owners get preferred treatment over just about every other county in Colorado? It’s true. There are only four counties in all of Colorado that are considered “High Balance, High Cost” counties. These areas get to take advantage of lower rates for loan amounts, that traditionally, are considered Jumbo mortgages in other parts of the state. Take a look, Colorado High Balance Counties (pdf). The four counties that get this special treatment include some of Colorado’s most picturesque portions of the state. Eagle, Lake, Pitkin, & Summit counties are home to many of Colorado’s mountain communities. Average home prices are high. In response, Fannie Mae designates┬áthese areas as high cost which allows homebuyers & refinancers to obtain conforming fixed and adjustable rate mortgages with balances up to $729,750. The difference in rates can produce significant savings. For example a $500,000, 30 year fixed mortgage at 5.5% has a principal and interest payment of […]

Colorado Foreclosure Update

Here is something I’d like to know. How many investor-owned properties were foreclosed in 2007? What about the first half of 2008? My theory is that speculators getting zero-down, stated income, non-owner occupied, negative amortizing loans contributed more to the unraveling of the credit markets than primary homeowners who got a low rate adjustable mortgage. But here’s the rub, where is the the data that supports my theory? It’s not measured! RealtyTrac just announced that Colorado fell to 10th place in September for foreclosure data. The story can be read here RealtyTrac reports seem more self-serving than a societal benefit. RealtyTrac caters to foreclosure bargain hunters. Reporting these statistics gets RealtyTrac lots of love in the news and the blogosphere and the resulting sensationalism feeds their business model by driving new customers to their service. The problem is that their reporting methodology results in inaccurate measurements and comparisons. There are instances when some Colorado homeowners get counted twice or […]