Mortgage interest rates have been reasonable for Columbus home buyers for years, but luxury home buyers have even more reason to smile. The lending environment for mortgages exceeding $417,000 – namely non-conforming or “Jumbo” loans, is extremely favorable.
The improved availability of Jumbo mortgages, along with historically-low interest rates, has sponsored unprecedented buying opportunities for luxury homes in Columbus and the metro suburban areas.
Prior to 2013, Jumbo loans were generally more expensive than their conforming counterparts. But when Fannie Mae and Freddie Mac increased guarantee fees to lenders for conforming loans, lenders passed the cost to consumers in the form of higher rates. However, Jumbo loans were not affected by this change.
Also, the Federal Reserve’s tapering of the asset purchase program has translated into higher rates on conforming mortgages. This is because the asset purchase program included conforming mortgage securities issued by Fannie Mae and Freddie Mac. Now that the money spigot has been tightened up, the interest rate difference, or “spread” between a conforming loan and a Jumbo loan is a non-issue.
Today, a metro Columbus home buyer with excellent credit can obtain a 30-year Jumbo mortgage at practically the same interest rate as a 30-year Conventional mortgage. On some occasions the Jumbo rates are the better deal! The low cost of Jumbo mortgages has generated stronger home buyer activity in the upper price ranges. This has led to reduced home inventories and a more competitive luxury market.
Interested in the beautiful luxury homes available in Columbus? Let us help you! As your Exclusive Buyer’s Broker, we serve your best interests at all times. Unlike real estate agents and brokerages who represent sellers, as an Exclusive Buyer’s Broker, we only represent you, the buyer, getting you the best price and terms with no conflict of interest at all times.
Understanding this distinction could literally save you thousands of dollars not only on the purchase price and terms, but also on seller concessions and home inspection issues, whether you are a luxury home buyer or first-time homebuyer.
Contact us with your home buying questions! Remember, we are with you every step of the way…all the way home!
Andrew Show
Broker, CEBA, CEBA-M, CNE, CSP, ABR-M, e-PRO, GREEN
Buyer’s Resource Realty Services
Serving Metro Columbus, Ohio with Exclusive Buyer’s Agents
7100 North High Street, Suite 204, Worthington, Ohio 43085
614-888-4110 | 888-888-4110 Toll Free | 614-839-4110 Fax
