Great News!
Until recently, financing above the conforming loan limits has been unattractive in regards to the interest rates and loan-to-values. The secondary market for these loans is non-existent. Only the largest banks are able to make these loans and put them into their portfolio. Currently the maximum conforming loan amount in Orange County is $729,750.
Since the Southern California real estate market has stabilized, Bank of America no longer considers Southern California a soft market for lending guideline purposes. They have now decreased the interest rates and increased the loan-to-values for both fixed rate and adjustable rate products. We offer both amortizing and interest only terms on the adjustable rate loans. This is a real win for real estate agents working with clients for high-end properties. Here are some examples of what is currently available.
80% to $2,000,000
5.125% 30 Year, 3.625% 5 Year ARM, 4.25% 7 Year ARM
70% to $3,000,000
5.125% 30 Year, 3.625% 5 Year ARM, 4.50% 7 Year ARM65% to $5,000,000
5.50% 30 Year, 4.25% 5 Year ARM, 4.75% 7 year ARM
No Points and No Prepayment Penalties
Not every client has the ability to pay cash for the high-end properties so the much improved jumbo financing terms are welcomed news. While these rates and terms are subject to change, we are able to lock-in the interest rates for the customers at no cost for the necessary escrow period at time of acceptance of their offers.
This information was emailed from Kevin Budde of Bank of America
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