Buyers of luxury homes in Pawleys Island and DeBordieu, the private ocean front community just north of Charleston, SC, are always looking for interesting financing opportunities, whether they are involved in a purchase, or a refinancing process. I read a very interesting article last week in REALTOR MAG that talked about how some banks are making Jumbo Loans more affordable than conventional loans. CLICK HERE to read the article.
I was curious, so I asked my friends Leigh Reid and Jimmy Parker at First Trust Mortgage why that was happening. According to Jimmy, ” basically some banks are offering low Jumbo rates, in some cases, lower than Conventional, to try to entice potential borrowers to go ahead and take out that Jumbo loan. Two reasons why, would be:
1. With rates as low as they are, the banks know the borrowers are not going to be refinancing, ever, and they get to keep that loan and make all of the interest on it.
2. When you get a mortgage these days, you show a complete picture of your financial portfolio. After showing all of your assets to the bank, they are able to cross-sell you on other bank provided services, such as brokerage packages.”
“I think this is a win win, for both the borrowers, and the banks. The borrowers get to get in at the lowest interest rates possible, saving tons of money, while the banks get to make some money.”
We’re starting to see this trend locally. According to Jimmy, Jumbo Loan rates are usually at least .5% higher than conventional, but right now, with the lenders they use, the Jumbo Loan rates are just .375% higher than conventional rates.
All this to say, it’s a very good time to move forward with that luxury home purchase!
To contact Jimmy Parker at First Trust Mortgage, call him at the office: 843-235-8681, ext. 32, or on his cell: 843-543-0305 or email: email@example.com
For more info about Luxury Homes in DeBordieu, call me!