Manhattan median condo and co-op re-sales slipped from a year earlier to $895,000, and $550,000, respectively. With prices well above the national median of $165,400, New Yorkers are more likely to feel the sting of jumbo mortgages. In our market, this translates into any loan exceeding $729,750.
The rates on 30-year fixed-rate jumbo mortgages averaged 6.5% for the week ended March 27 versus a recent high of 7.9% on October 31. Just because rates are down, however, doesn’t mean it’s any easier to get a jumbo. As an example, Bank of America jumbo loans require at least a 720 credit score and a 20% down payment, with a minimum six months’ reserves in the bank. ING Direct requires 25% down. Those considering jumbos need to compare apples to apples. Mortgage products don’t always allow for easy comparisons based on differing terms, so make sure to consider mortgage fees and costs.