Seems that people are struggling with "why should I buy today" particularly in luxury homes. There have been some large price corrections in Chattanooga Luxury real estate, both in single family and luxury condos. These corrections have not been as severe as some parts of the country, but no less painful!
A "jumbo" loan is the most common method of purchasing a luxury home. A "jumbo" is classifed as being over $417,000 in amount. These loans have had less attractive interest rates and much higher down payment requirements than the FHA loan programs that you have heard so much about. FHA home loans in the Chattanooga TN real estate market go up to $271,000 and have down payments as low as 3.5% vs 20% for jumbo loans and this week we saw FHA rates as low at 4% for 30 year FIXED RATES. WOW!
Finally some good news for jumbo buyers-we saw jumbo rates down to 5% yesterday-still with 80% loan to value, but the rate is unheard off. So if you are considering buying luxury or refinancing your existing home...NOW is a GREAT TIME TO BUY OR REFINANCE!