What amount is Considered a Jumbo LoanWhich amount is considered a jumbo loan?
That means that the compliant credit line for Phoenix, Arizona, will be higher in 2018 than in 2017. A jumbo loan is by default one that goes beyond the scale restrictions used by Freddie Mac and Fannie Mae. This " oversize " construction financing is basically too large to be marketed via Freddie Mac or Fannie Mae in the alternative markets.
Due to the higher credit volume, some creditors have more stringent eligibility requirements for jumbo mortgages. A jumbo loan in Phoenix is something bigger than $453,100 for a single entity home. Recent housing news shows that the average home value for Phoenix, Arizona, in November 2017 was around USD 220,000.
These two figures are well below Maricopa County's compliant credit line of USD 453,100. Thresholds for Phoenix increased just because the RHFA increased the amount of the ''baseline'' for the whole country. That means that the typical homeowner in Phoenix should have many houses to pick from without getting into jumbo credit area.
Earlier interest rate for larger mortgage? While it may seem contraintuitive, however, the median interest rate on jumbo credits in Phoenix and across the nation tends to be lower than the median interest rate on smaller compliant credits. Some years ago, jumbo credits generally had higher interest levels. However, due to changing investor demands and other determinants, Phoenix Jumbo credits have experienced lower interest rate averages in recent years.
Mortgage Bankers Association's annual questionnaire for the November 24, 2017 issue revealed the following: Admittedly, interest levels can change from one borrowing to another for various different purposes. However, on avarage jumbo credits tended to have lower interest than compliant credits.