Friday, November 9, 2018
By Israel Finley Ramos

Phoenix, AZ Jumbo Loan Threshold Increased for 2018 

 

  •  “In 2018, a mortgage that exceeds the conforming limit of $453,100 will be considered a jumbo loan in Phoenix” (Loan Limits.org). 

  • These “oversized” home loans are essentially too big to be sold into the secondary mortgage market via Freddie Mac or Fannie Mae. As a result of the higher amount being borrowed, some lenders have stricter qualification criteria for jumbo mortgage loans. 

  • The conforming loan limits went up in 2018 for Phoenix simply because the FHFA raised the “baseline” amount for the nation as a whole. 

  • the average mortgage rates for jumbo loans in Phoenix and across the country tend to be lower than the average rates for smaller conforming loans. 

  • “The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($424,100 or less) remained unchanged from the week prior at 4.20 percent. 
The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $424,100) decreased to 4.14 percent from 4.16 percent” i.e. jumbo loans tend to have lower rates than conforming. 

 

-Israel Finley Ramos, MBA 

 

 

 

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