Are you thinking about buying a home in New York City? If so, you may be frightened by the high value of the homes for sale there. What’s more, you may find obtaining a conventional loan for these homes next to impossible to do. However, it is possible to get the jumbo mortgage rates NYC lenders can approve that can help you get into the home of your dreams. There are a few things to know though.
What Are Jumbo Mortgages in NYC?
A jumbo mortgage is one that exceeds the thresholds set by the federal government. If you plan to obtain a loan over this limit, the loan cannot be secured or bought by Freddie Mac or Fannie Mae, the country’s largest lenders. In New York City, this threshold for 2017 is $625,500. If you plan to buy a home over this, you need to consider the jumbo mortgage rates NYC lenders offer.
These are riskier loans because of their high value. However, there are many lenders in and around NYC that will approve these loans. The city’s real estate rates are high, but they typically maintain this very high level. That is, homes do not depreciate very often here. This provides lenders with a bit more of a safeguard.
You will need to compare your options carefully. Speak to numerous jumbo mortgage rates NYC lenders to determine what they can offer. Because these loans are more expensive to borrow, you can expect the lender to require stricter terms. You will also need to compare more lenders to find the loan term that is right for your specific needs. The good news is these loans are readily available here and typically are affordable.
Jumbo mortgage rates NYC are available, see the options available at Guaranteed Rate.