Jumbo Loans Hard To Find In Michigan

From freep.com:

High-cost housing markets across the country are getting a pick-me-up from the stimulus package and finally benefiting from a plan to generate lower rates on super-size mortgages.

But Michigan‘s posh ZIP codes aren’t enjoying the party. If you’re shopping for a $500,000 mortgage in suburban Detroit, in Birmingham for instance, some home buyers might get a rate of 7.5% or so. The stimulus package temporarily allows Freddie Mac and Fannie Mae to buy so-called jumbo mortgages of as much as $729,750 for single-family homes in selected high-cost markets. The county-by-county maximum mortgage is calculated at 125% of the median home price for a given area. The revamping of loan limits only applies to 244 high-cost counties across the country. The change should enable more homeowners to refinance their mortgages or buy new homes.

So sky-high housing prices aren’t keeping middle-income families out of homes in the state.

In Michigan — and most parts of the country — the cap for a conforming loan remains at $417,000.

Greg McBride, a senior financial analyst at Bankrate.com, said rates on conforming jumbos only began falling in mid-May.

Now, rates for conforming jumbo mortgages are slightly higher than standard 30-year fixed mortgages. At the same time, rates for jumbo mortgages above the conforming limit continue to be about 1.25% higher than standard conforming loans.

About Luke Ford

Raised a Seventh-Day Adventist at Avondale College in Australia, Luke Ford moved to California in 1977. He graduated from Placer High School in 1984, reported the news at KAHI/KHYL radio for three years, attended Sierra College and UCLA, was largely bedridden by Chronic Fatigue Syndrome for six years, and converted to Judaism in 1993. From 1997-2007, Luke made his living from blogging. Living by Beverly Hills (Alexander90210.com), he now teaches the Alexander Technique (moving the way the body likes to move). Lessons cost $100 each and last about 45 minutes. In 2011, Luke completed a three-year teaching course at the Alexander Training Institute of Los Angeles. His personal Alexander Technique website is Alexander90210.com. Luke is the author of five books, including: » The Producers: Profiles in Frustration » Yesterday’s News Tomorrow: Inside American Jewish Journalism
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