Now’s the Time to Buy a Home in Downtown Marietta

jumbo loans facilitate more high-end home sales

Now is the time to buy a luxury home, according to a recent RISMedia article stating that jumbo mortgage loans are on the rise. Jumbo loans were common and rather easy to get before the housing bubble burst. However, in recent times, lenders have shied away from making these larger loans easy to get.  With recent housing industry gains and a stronger economy, lenders have finally allowed jumbo loan back into the spotlight with new options and lower interest rates.

What is a jumbo loan?

In case you’re wondering, jumbo loans are mortgages for more expensive, high-end homes. To be classified as “jumbo,” the loan must exceed the loan limits allowable for Fannie Mae or Freddie Mac. These loans must then be guaranteed by outside institutions, and carry a higher credit risk than most mortgages. That used to result in higher interest rates, but at the moment, available terms are comparable to those of lower-tier homes, making high-end home purchases more accessible to buyers.
This upward mobility when it comes to the North Atlanta real estate market is good news considering the stalled growth of luxury real estate in recent years.

Rise in loan accessibility

Jumbo loan originations in 2012 rose to $203 billion, and it’s estimated that $216 billion in jumbo loans could be dispersed in 2013. Potential home buyers are choosing to up the ante and pursue homes that are a step up from what they previously would have considered, thanks to higher Fanie Mae and Freddie Mac fees. The rise in these fees has shrunk the gap between conforming and jumbo mortgages, leaving some jumbo mortgages just .17% higher than conventional loans.
If you are interested in high-end homes for sale in downtown Marietta, Roswell, and other north Atlanta areas,  contact me, Barry Wolfert, Associate Broker at Keller Williams Realty Consultants. As an experienced real estate professional, I have the knowledge and know how to help you navigate the ever-changing metro Atlanta real estate market and find the high-end home that is right for you.