Real Estate Trends: Low-Risk Edge for Everyday Loans

Dear Neighbors,

The Federal Reserve has taken extraordinary measures to assist the mortgage market during the coronavirus pandemic. One of the assists was to buy a mostly unlimited amount of mortgage-backed securities earlier this year.

The Cares Act additionally provided homeowners with the tools needed to get through the Pandemic and for mortgage companies to say yes to new loans, because of the federal government backing of loans. The downside of all this backing is that jumbo loans aren’t entitled to many of the benefits included with the federal government backing.  However, it puts a focus on the everyday loans needed for most Americans for a place to call home. We’re making those loans right here in Vancouver.

A jumbo loan is one that is looked at as too-big to be sold to government-backed mortgage giants Fannie Mae and Freddie Mac; they must be larger than $510,400. Up until recently, banks favored jumbo loans as most banks considered them less risky. The result currently is that banks like Wells Fargo, for example, required customers in jumbo loans to hold at least $250,000 in the bank to refinance up through July.

So when you are looking for a loan for a home under the $510,400 price range, you have a number of choices that puts you in the driver’s seat. First, you have the option to consider the type of lender you want. While there are many online lenders today, the majority of people still like to choose a local lender like Peak Mortgage. Next, you have different mortgage lenders that offer fixed- and adjustable-rate loans as well as those that are government sponsored like FHA, VA, and USDA. The third choice is about your customer experience. I hear again and again that people like to have a lender that can assist them and be there when help is needed. Lastly, look at your chosen lenders’ reputation and transparency.

We are seeing more loans than ever getting made today because of the lower risks associated with the government backing of loans. Be sure to keep asking questions. Peak is here 24/7!

Stay healthy and safe. Call or email MPattullo@PeakMtg.com  I’m here to help you understand the many choices that make life great in our Vancouver area.

We lend where we live,

Mike