Friday, November 9, 2018
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