Buying Big

If you are looking to buy a big house (or one with a big price tag) but have not been able to get it financed, there is a bank that is ready for you. Bank of America has cut interest rates on jumbo mortgage loans. Jumbo loans are loans are in excess of what Fannie Mae and Freddie Mac will guarantee in a particular area. (This amount is $280,000 in the Baton Rouge area.) These loans have become more expensive and harder to come by since September, 2007. As delinquencies rose, investors who fund most home loans through the purchases of mortgage-backed securities were reluctant about "private label" securities that didn't carry the backing of Fannie and Freddie. While some lenders must sell the loans they originate, Bank of America has plenty of room on its balance sheet to fund jumbo loans and hold them for investment. They are ready and willing to service this area of loans.

Everyone will not qualify for the 30-year, fixed-rate loans of up to $3 million being offered by Bank of America. In order to qualify, you will need a strong credit score, a down payment of 20 percent or more, documented income, full appraisals, and assets sufficient to cover six months of payments. While that may seem like a lot to qualify, Bank of America's fixed-rate jumbo loans will prove attractive to qualifying borrowers with their rates being in the high five percents.

Bank of America will only offer these loans directly to consumers. They will not go through independent mortgage brokers but will go through retail bank branches and Countrywide Home Loans. The loans are aimed at homeowners with adjustable-rate mortgage jumbo loans who want to refinance at a better rates. Some adjustable-rate mortgages are being offered at a lower rate. However, Bank of America is confident many homeowners will like the stability of their 30 year fixed mortgage rate

Bank of America has been offering these jumbo loans up to $3 million. Dan Green, a Cincinnati-based loan officer for Mobium Mortgage Group Inc. said Bank of America's underwriting standards "aren't the loosest or the strictest -- they're right down the middle of the road." Middle of the Road probably sounds good to the homeowners and buyers who are looking to invest in their big dream home.

Are you looking for your Big Dream Home? Contact Sandy's team at (225) 677-SOLD or email info@sandyco.com. We are here it help you in East Baton Rouge, Livingston Parish, and Ascension Parish.