May 23

Jumbo Loans Reach 16-Year High

Hoping to take advantage of mortgage rates that are still historically low, more Americans are pushing into higher mortgage levels to afford more expensive homes. Lenders reported that 2021 marked the highest dollar volume in jumbo loan origination’s since 2005. Jumbo loans are mortgages that exceed the loan limits of Fannie Mae and Freddie Mac.

Rates were cheaper last year, which gave buyers extra budgeting power. In 2021, mortgage rates on jumbo loans reached an all-time low.

The number of jumbo loans more than doubled in 2021 compared to the prior year, according to a new report from CoreLogic, a real estate data firm. The year-to-year comparison, however, is coming off very low numbers set in 2020 when the pandemic outbreak began in the U.S.

Still, jumbo-loan secularization in 2021 marked the largest issuance since 2007, according to CoreLogic.

Borrowers getting jumbo loans have better credit profiles than those buyers active during the housing bubble of 2005 and 2006, CoreLogic reports. Last year, borrowers with jumbo loans had an average credit score 30 points higher than that group in 2005 and 2006. Borrowers also had average loan-to-value and debt-to-income ratios that were 5 percentage points lower than those in 2005.

Jumbo loan origination’s are predicted to fall this year, however, as mortgage rates are expected to rise and home prices are forecast to moderate.

©National Association of REALTORS®
Reprinted with permission

admin

For all of your Real Estate needs, place yourself in the competent hands of a career Realtor who is a Philadelphia native and Delaware County resident. Skilled, smart and enthusiastic about his work and his life, Anthony DiDonato has the appealing combination of business sense and people skills gives him an edge in an industry that demands both.

Educated at Drexel University with a dual major in accounting and finance and minors in management and psychology Anthony DiDonato offers over 25 years of experience in the real estate industry. He has been a real estate investor since 1985 and a member of H.A.P.C.O. (Landlord Association). He became a licensed Realtor in 1992 and a member of the Local, Pennsylvania and National Associations of Realtors. Anthony DiDonato is also a member of the Computerized Multiple Listings, (MLS) and Internet Marketing Programs. In 1997 Anthony DiDonato became Century 21 All-Elite, Inc. Corporate Secretary.

Anthony DiDonato believes in taking his profession to the highest level of quality service. He is known for finding that “perfect” property in Philadelphia, Delaware County, Chester County, Montgomery County and surrounding areas in Pennsylvania for his buyers and helping his sellers prepare their properties so they sell quickly and efficiently.

When it comes time to negotiate the terms of a contract, Anthony DiDonato has the knowledge, experience, and professionalism applied to meeting – or exceeding – his clients’ expectations. His service to his clients is second to none. His honesty and integrity have been his claim to fame.

For Superior Real Estate Representation in the Delaware Valley, Philadelphia, Delaware County, Chester County, Montgomery County and surrounding areas in Pennsylvania… call Anthony DiDonato.