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Jumbo Market Heating Up

May 26, 2014

Jumbo loans are coming backIn addition to overall home sales being up, the sale of luxury homes – homes priced at $1 million and above – increased 7.8 percent in March compared to  levels from one year ago. Because of this fact, lenders are looking at jumbo loans as an appealing area of growth as other mortgage areas are in decline.

The lack of other mortgages is allowing smaller financial groups to step in and offer jumbo mortgages, which are holding around the same interest rates as conventional loans for the first time in 35 years. Small banks can now compete with larger ones because they don’t have to pay out as much money on the servicing end of it. This is letting them compete with larger interests like Wells Fargo, who is the dominating force in jumbo loan products. A new article on Realtor.org shared that the banking giant issued more than $43 billion in loans in 2013. But PHH Mortgage, a small lender in Mount Laurel, New Jersey, has become the second largest jumbo lender with $26 billion in loans last year, squeezing ahead of Bank of America in 2013.

Are you looking for a luxury home in Chicago? Would you consider securing your jumbo mortgage from a smaller local bank? Let us know why or why not in the comments!

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About The Author

Read All Stories By Mitch Levinson

Mitch Levinson is the author of “Internet Marketing: The Key to Increased New Home Sales” published by BuilderBooks. He is an Internet marketing expert with expertise in search engine optimization, website development, email marketing, social media and CRM consulting services. He is known for creating effective programs that can be tracked through analytics to prove effectiveness and ROI. Mitch is founder and president of MLC New Home Marketing and MLC FlatFee Realty, as well as managing partner of mRELEVANCE, LLC, a Marketing, Communication, Interactive agency with offices in Chicago and Atlanta. He currently leads the Chicago team. A Multi-Million Dollar Sales Producer who earned an MBA in Computer Information Systems and eCommerce, he brings a unique perspective and experience to the field of real estate communications. Mitch combines the two interests in order to help home builders and developers gain a competitive advantage through the Internet and technology. When he isn’t behind a computer, he enjoys participating in sports and coaching his kids’ teams. Mitch resides in Arlington Heights, Ill., a northwest suburb of Chicago, with his family, which includes two rambunctious labs. Visit my Google+ profile.

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