Tweet
Re: Chart: Low, Mid & High Housing Bubble Indices
Jay,
I just looked on Bankrate.com for 0 points mortgages in 3 cities: L.A. (Hi), Boston (Mid) and Atlanta (Lo). Bankrate only allows you to select 20% or 5% down. It would be nice to have rates for 10% down too, but they don't. This is not a scientific study, but does show a pattern.
Conforming (<$417k) loans were essentially the same in all 3 markets. 5.1% with 20% down, or 5.4% with 5% down.
Jumbo loans were very different, due to the availability of "superconforming" loans in counties with higher median housing price. LA's limit is $729k, Boston's is $523k and Atlanta has no superconforming mortgages. Amazingly, mortgage rates in Boston and LA for loans above $417k and below the aforementioned limits are the same as conforming (5.1%), yet carry no premium for putting only 5% down!
LA puts a 1% premium on loans over $729k and requires 20% down. Boston offers loans over $523k with only a .5% premium with 20% down, or a 1.5% premium with 5% down. Atlanta's $417k+ rates carry a 1% premium and require 20% down. No 5% down Jumbo loans exist in Atlanta.
Jimmy
Originally posted by Jay
View Post
I just looked on Bankrate.com for 0 points mortgages in 3 cities: L.A. (Hi), Boston (Mid) and Atlanta (Lo). Bankrate only allows you to select 20% or 5% down. It would be nice to have rates for 10% down too, but they don't. This is not a scientific study, but does show a pattern.
Conforming (<$417k) loans were essentially the same in all 3 markets. 5.1% with 20% down, or 5.4% with 5% down.
Jumbo loans were very different, due to the availability of "superconforming" loans in counties with higher median housing price. LA's limit is $729k, Boston's is $523k and Atlanta has no superconforming mortgages. Amazingly, mortgage rates in Boston and LA for loans above $417k and below the aforementioned limits are the same as conforming (5.1%), yet carry no premium for putting only 5% down!
LA puts a 1% premium on loans over $729k and requires 20% down. Boston offers loans over $523k with only a .5% premium with 20% down, or a 1.5% premium with 5% down. Atlanta's $417k+ rates carry a 1% premium and require 20% down. No 5% down Jumbo loans exist in Atlanta.
Jimmy
Comment