Jumbo Loans Hard To Find In Michigan
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.