I have been blogging about the financial crisis for too long. However, I have seen the first sign of recovery. Last week my mortgage agent gave a package to one of my home buyers, which we haven't had for over 5 months. He gave a $2,000,000, two million dollar loan for a 30 year fixed Jumbo. It was 0 points for 6.5% interest rate. The borrower was required to have a 720 credit score and put 25% down.
The best we were doing was local banks in Bergen County are, Savings and Loans doing up to 1 million dollars. Any big loans over one million were going for very high interest rates making large homes sales really tough. With this now, we stand a chance to get the high end going again.
Lack of reasonable rate financing, has stop this market short, in Northern Bergen County luxury homes. Only very big down or cash buyers could buy. Now we will have a bit of a market again. If you are interested in this loan for your business, email me I will forward you the info.
The push of money back into the market is what we need and is what they are doing. Setting aside everything else if you sell a house the old mortgage also gets paid and that money goes back to a bank or investor and into the system again. This is a road to recovery. I don't know if this is due to the fed's 90% loan, non recourse financing for investors, banks etc. to buy paper. I am assuming it may be. If it is or what ever it is it is working!
Richard
wiew my new homes for sale
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