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 […]

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