Mortgage Terms Are Easing for Luxury Homes

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Mortgage terms are easing for luxury homes which will significantly help this market recover. While the real estate market in Bergen County has been recovering nicely since late last year, the luxury market has not.  Sales of high end homes has been one of the less robust parts of the market because of financing.  Financing for upper tier homes all but disappeared in 2008.  This was a large part of the…

Fannie Mae and Freddie Mac Are Easing Jumbo Mortgage Terms

Posted by & filed under Buying, Selling.

Fannie Mae and Freddie Mac buy mortgages which means that they guarantee them. Without the backing of Fannie and Freddie, mortgage lenders have to find other investors to sell their mortgage loans to and those investors charge more so interest rates are higher. Fannie and Freddie backed mortgages are called conforming; the others are called jumbo. The limit on a conforming mortgage is $417,000 but that is about to change….