The jumbo loan market is starting to loosen, making it easier for Hawaii Kai move-up buyers to borrow and use the tax credit (which expires April 30).
Rates on jumbo loans of more than $729,750 in highest-priced markets rose during the financial crisis and lending standards tightened to the point where borrowers couldn’t refinance or get a new loan.
But, in the last couple of weeks, the average interest rate on a 30-year fixed-rate jumbo has fallen to 5.79 percent, a five-year low, according to rate tracker Informa Research Services. Rates are even lower on hybrid adjustables.
The availability of these loans suggests that banks are feeling more confident since Fannie Mae, Freddie Mac, and the Federal Housing Administration do not insure them.
Contact me for referrals to qualified Hawaii Kai lenders if you are in this price range and want to discuss financing.
Barbara Abe, Realtor