Jumbo Mortgages Pick Up Pace

Jumbo home loans have picked up pace rapidly within the last year and recovering much faster than the rest of the mortgage market.

Jumbo mortgages, which are bigger and are usually reserved for luxury homes, are making a big comeback. In total, lenders distributed $38 billion in private jumbo mortgage loans during the second quarter of 2012, which was 65% higher than the previous year. The demand for these loans has likely increased because of the rise in the sale of luxury homes.

The sale of $1 million and higher homes increased by 19% during July, when compared to the previous year, according to a report recently released by the National Association of Realtors.

Unlike the most common residential mortgages, and loans for bad credit borrowers, jumbo home loans are not eligible for government backing and are then kept on the lenders books. If the loans default, the lender incurs all the losses. These loans aren’t eligible for government backing because of the loan amount cap in place for entities such as Fannie Mae and Freddie Mac, which won’t back loans larger than $417,000. That figure is flexible in more expensive real estate markets.

Jumbo mortgages are more affordable now than just a year ago because of lower interest rates. Rates on a jumbo loan now average 4.22% for a 30-year time period. That percentage is down from the 4.82% posted just last year, according to HSH.com.

While lenders are left with the debt if the loan defaults, the allure is clear. These loans are more profitable because of the interest banks receive and the large down payments required. Typically the down payment on a jumbo mortgage is 20% to 25%. If the loan is more than $1 million, that down payment could be upwards of 30%.

Floorplans for New Homes in Houston

If you are in the market for, or are looking at new homes in Houston, you’re going to want to make sure that you find the best possible deal on a home for the money you intend to spend; especially when buyers are able to purchase a new home for just as much, and sometimes less, than a foreclosed house.

Here are three well-designed and functional floorplans to help you during your hunt for a new home in Houston:

Number 1
Holly at Sunrise Meadow
Price: $120s
Beds: 3
Baths: 2
Builder: LGI Homes
Contact: 1-866-779-4600

Description: Holly is a 2-story home plan with 3 bedrooms, all located upstairs with the master-bedroom off to one side and equipped with a master-bath and walk-in closet. Downstairs is an open kitchen, dining, and living area, plus the 2-car garage, which is located below the master suite. This house is located at LGI Homes’ community, Sunrise Meadows, located in Sugar Land, just southwest of Houston.

 

Number 2
Flagstaff at Eagle Springs
Price: $130s
Beds: 3
Baths: 2
Builder: Ryland Homes
Contact (281) 913-7752

Description: Flagstaff has two floors, with the family room, kitchen, and dining area located downstairs, towards the front of the house, and the 2-car garage is found at the rear. On the second floor, the master bedroom is found towards the back of the house, with the two other bedrooms located at the front. The community name is Eagle Springs and is situated northeast of Houston in Humble, TX.

 

Number 3
The Gatlinburt at Pine Forest Green
Price: $150s
Beds: 3
Baths: 2
Builder: David Weekley Homes
Contact: (281) 249-7735

Description: The Gatlinburt is a single-story home featuring a great-room layout for the family, kitchen, and dining areas. The master-bed is found at the back of the home and features a master-bath and walk-in closet. The two other bedrooms, along with the 2-car garage are located at the front of the home. Pine Forest Green is a northwest Houston new home community.

 

These are just a few of the many great deals to be had on Houston new homes. If you would like to learn more about new housing opportunities in Houston, in a neighboring city, or in another part of Texas, there are a multitude of new housing websites that provide an abundance of home listings by local builders. Check out the new homes listed on NewHomesSection.com, NewHomesDirectory.com, NewHomeSource.com, NewHomes.com, or AmericanHomeGuides.com.

Arizona Job Growth is Expected for 2011

To learn more about new houses in Arizona or Arizona home builders, visit www.bestnewhouses.com.

Arizona will see significant job growth in 2011, but the unemployment rate won’t shift much due to out of work jobseekers reentering the market.

The Great Recession is finally in our rearview mirror; however, the road to recovery isn’t going to be easy, says the University of Arizona’s economists – Marshall Vest and Gerald Swanson – who spoke Friday to an estimated 550 members of the business community at a luncheon in Tucson at The Westin La Paloma Resort & Spa.

While Arizona has shown signs of economic recovery, mainly in the first half of 2010, the growth significantly diminished over the past six months, according to Vest.

"We've lost a lot of momentum and we've given up some of those gains," Vest continued.

The state is faced with more than one obstruction while trying to reach a full recovery, said Vest. One of which includes the tightened credit market; resulting in residents, some of whom who may be seeking to downsize or needing to relocate for a job, not being able to find buyers for their existing homes.

The end to the homebuyer tax credit has shown to have furthered slowed home sales. Additionally, Arizona’s foreclosure rate hasn’t shown much sign of improvement, Vest told listeners.

While the job market began to show signs of improvement in the beginning of the year, the growth rate has significantly slowed. Manufacturing and overall construction is in the same boat and declines have also been experienced in these sectors, Vest said.

"This spring it looked like we had reached the bottom and things were going to turn, but in recent months you can see that jobs have turned down once again and have sunk to new lows," stated Vest.

In Tucson, the solar and biotech sectors have been steadily continuing to grow and interest in the area may bring more jobs, Vest suggested.

Swanson told luncheon attendees that the economy will show improvement over time. "We may do more harm than good if we try to rush the recovery," Swanson stated.

Consumer confidence is still very low, causing many corporations to attempt to mount up cash in effort to improve their liquidity. This has resulted in yet another factor adding to the slow mending to the economy, according to Swanson. One bit of good news is that many consumers have taken it upon themselves to pay down their debt.

Arizona’s deficit continues to be a major factor of concern for the state’s leading economists.

Arizona’s deficit is expected to reach $1.2 billion in fiscal year 2012, Vest said. He then explained that with the state’s money mainly going toward Medicaid, maintaining the prison system, and education, the future will result in major cuts in those areas.

Furthermore, this is going to impact health-care providers and students more so than others, and unless something is done, it's going to eat away at Arizona resident’s standard of living, Vest said.