Las Vegas, NV Mortgage Industry: Jumbo Mortgage Rates up big

I am not excited about this at all!  Over the course of one week JUMBO loan rates skyrocketed!  What this says overall is that the number of mortgage defaults are rising in the JUMBO arena.  In the Las Vegas, NV area this could have a big impact on our area prices. Outlines below in the story one of the largest Mortgage Banks raised rates by 1.125%!  What?  On a $500,000 JUMBO mortgage loan that is a difference of $384 per month in payment.  OUCH! 

Big-ticket mortgage rates rise

The cost of financing an expensive home purchase is jumping, making high-end buyers the latest victims of the mortgage meltdown.

By Les Christie, CNNMoney.com staff writer August 7 2007: 11:17 AM EDT

NEW YORK (CNNMoney.com) -- Don't look now but the cost of financing a home purchase in some of the nation's priciest areas just got more expensive.  Wells Fargo, one of the nation's biggest mortgage lenders, raised the interest rates on it 30-year, fixed-rate, non-conforming (AKA jumbo) loan to 8 percent last week, up from 6.875 percent. Other lenders followed suit and more are likely to join them.

The rate jump means the monthly bill for a $600,000 mortgage would hit $4,403, compared to $3,942 previously, an increase of $461.  Jumbos are loans of more than $417,000, the limit observed by Freddie Mac and Fannie Mae, the government sponsored enterprises (GSEs) that buy loans in the secondary markets. Freddie and Fannie don't buy loans above that cap. full story

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