Banks Putting the Squeeze on Jumbo Loan Borrowers


A discussion on the Forum got started yesterday on this piece from the Real Deal. "JPMorgan Chase and Wells Fargo have moved up by four weeks to December 1 the deadline for borrowers to close on jumbo conforming loans, thereby limiting lending options available to already pinched home buyers, in high-priced areas such as New York City," they write. "The move affects buyers of homes and apartments between about $1 million and $3 million seeking a loan in the jumbo category, which is between $417,000 and $729,750." After December 31, the loan limit will drop to $625,000, but JP Morgan and Chase, who covered 71 such mortgages in the city last week, made the cutoff date December 1. The bottom line, as reader Sunny Hong wrote: "Those that are looking for jumbo conforming loans above 417k and up to $729,750 will not be able to obtain a mortgage from Chase or Wells after December 1... This affects people that have loan amounts between 417k and $729,750 from getting a pretty competitive 30 year fixed rate. They would have to get a regular jumbo loan. Other banks may follow suit as well." Anybody out there affected by this?
Chase, Wells Set Early Date for Jumbo Loan Closings [Real Deal]
Photo by Rev Dan Catt.

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