Lake Geneva Real Estate
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Short breakdown by #NAR:
Per IMF News:
Agencies Nipped More Jumbo Share in 2016
By John Bancroft
The jumbo mortgage market generally kept pace with the robust growth in first-lien originations last year, but the agency component clearly did better than the non-agency side, according to a new Inside Mortgage Finance ranking and analysis.
An estimated $534.57 billion of single-family mortgages with loan balances exceeding $417,000 were produced last year, an increase of 20.0 percent from 2015. That was in line with the 19.0 percent growth in total first-lien production in 2016.
But the agency jumbo market – loans in high-cost markets eligible for securitization by Fannie Mae, Freddie Mac and Ginnie Mae – was up 30.9 percent for the year, to a record $153.57 billion. The estimate is based on conventional, FHA and VA mortgages for one-unit properties that were securitized during 2016 and had loan balances exceeding $417,000 – the traditional agency loan limit.
These conforming-jumbo loans accounted for 28.8 percent of total jumbo production in 2016, the highest share since 2013. For the full story and exclusive tables, see the new edition of Inside Mortgage Finance.
Lending? I can get you with talented bankers in Lake Geneva. Finding you the right home? Now that will take longer! 🙂 Get started today with transitioning to Lake Geneva, Williams Bay and Fontana at Geneva Lake.
While the mainstream media is ‘touting’ a problem with rates, that is not so. Here is a visual look at interest rates for the past 30 years. It is still ‘free money’ in my opinion. I purchased my first house in 1981 (yikes, seems like yesterday) and the rate was a 18%. I was lucky to get a 13.5% ARM for 5 years. ARM = adjustable rate mortgage which allows for lower rates over a shorter period of time. My ARM was 5 years and then I refinanced. Note, the chart starts in 1986 and rates had fallen to the mid 10% range. Guess what? Houses were still selling and people were still moving, but you purchased “less house”. If you are thinking ahead and planning for your future you should be buying.
If your interest rate is 5 percent on $100,000, after plugging the numbers into the equation, you calculate your monthly payment to be $536.82. If your interest rate is .25 percent higher, at 5.25%, your monthly payment is 552.20, a difference of about $15 per month. If your loan is for $200,000 with a 15-year loan at 5 percent, your monthly payment is $1,581.59 and at 5.25% your monthly payment is $1,607.76. The .25 percent difference adds an extra $26 per month. And this is at 5% and 15 year loans.
Even less on 30 year loan and we are still around 4%! You and I know you are spending more at Starbucks on a weekly basis.
In 2017 buy a home. Lock in your rate. Lock in your monthly budget. Lock in a new lifestyle.