Santa Clara County Jumbo Mortgages Now Classified Less Risky

Jumbo mortgages in Santa Clara County has been reclassified from a market risk perspective to class 1, which is the least risky class!  The major benefit is that now a borrower can put down 20% on a jumbo loan and only need to show 10% of the loan amount in liquid funds as reserves.  This should help the upper end of the real estate market in communities such as Saratoga, Monte Sereno and Los Gatos.  This change is effective today, Tuesday January 19, 2010.

Last week there was very light trading in the bond markets and mortgage rates didn’t move much although we did see a little improvement last Friday.

Current rates for 30 year fixed rate, fully amortized mortgage loans according to John Shapiro of Private Mortgage Advisors are as follows:

Conforming loans ($417K and under):  5.125%
High Balance conforming  ($417K to $729,750): 5.25%
Non-conforming jumbo loans (greater than $729,750):  5.70%

Interest rates are now quite low and home prices in many west valley neighborhoods such as Saratoga, Los Gatos and Monte Sereno are expected to be relatively flat in the near future, so I believe now is a good time to be either a homebuyer and home seller.

Rick Bonetti | APR Referral Network | 408-857-8800 | DRE #01237009

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