Many consumers in the market for jumbo loans (mortgages between $417,000 and $729,750) may need to act quickly to lock in loans as they could get priced out of the market come October 1st.
In many regions throughout the US jumbo loans will tighten their range from the current $417k – $729k to $417k – $625,500. And anyone looking to obtain a mortgage or refinance an existing mortgage with a loan value between this range will be affected.
We’ve heard mortgage brokers across the US (and specifically those operating in high priced neighborhoods) are reaching out to there clients to make them aware of the coming change this Fall, and it appears many consumers are completely unaware of the modification. However, here at BankVibe.com, we’ve seen an increase in internal searches and information requests for jumbo mortgage refinancing, so it also seems that those who ARE aware of these coming changes are taking action.
The people who will feel this impact the most are those living in high cost areas such as New York, San Francisco, Seattle, Los Angeles, etc. For example, the San Francisco real estate market had a median home price of $775,000 last month, so anyone looking to refinance or purchase a home in that area after October 1st may be in for a rude awakening if they haven’t already prepared for this change.
Roughly 200 counties throughout the US will be affected by the new jumbo loan limits according to the National Association of Home Builders.