Jumbo Mortgage Loans Charleston SC As of 2024, the conforming loan limit for a single-family home is $726,200 in most parts of the United States. Any loan amount above this threshold is considered a jumbo loan. However, in high-cost areas, including certain counties in states like California and New York, the conforming loan limit can be as high as $1,089,300. Loans exceeding this amount are also classified as jumbo loans in those areas. Jumbo loans typically come with stricter qualification requirements and higher interest rates, as they are not backed by Fannie Mae or Freddie Mac. *Jumbo mortgage rates in Charleston SC remain slightly higher than conventional mortgages due to the higher loan amounts and risks associated with them. These loans, which exceed conforming loan limits, generally have higher credit score and down payment requirements. Currently, jumbo rates average around 7.2%-7.5%, which is comparable to conventional mortgage rates but still on the higher side for larger loans. Looking ahead, experts predict that mortgage rates could trend downward throughout 2024 but will likely remain above 6%. Factors like further Fed rate hikes (if inflation resurges) or unexpected economic disruptions could slow this decline. Several analysts suggest that mortgage rates will end 2024 between 6.15% and 6.7% depending on the economic landscape. However, if the economy experiences a significant downturn or further rate cuts from the Fed, rates could drop even lower. Here in the Charleston, SC area it is no mystery that we have some very expensive residential luxury real estate, and unless borrowers have the cash to pay for it, often times they need jumbo loans. There are countless beach and water front homes on Kiawah, Seabrook Island, Daniel Island, Sullivan’s Island, Folly Beach and Mt Pleasant as well as homes downtown Charleston SC that exceed $10Million. Click see the latest updates on interest rates and lowest current mortgage rates. Jumbo mortgage loans are a higher risk for lenders. This is because if a jumbo mortgage loan defaults, it may be harder to sell a luxury residence quickly for full price because less of the population can afford pricier homes. Luxury prices are more vulnerable to market highs and lows in some cases. That is one reason lenders prefer to have a higher down payment from jumbo loan seekers. Jumbo home prices can be more subjective and not as easily sold to a mainstream borrower, therefore many lenders may require two appraisals on a jumbo mortgage loan. The interest rate charged on jumbo mortgage loans is generally higher than a loan that is conforming, due to the higher risk to the lender. It can be more expensive to refinance a jumbo loan due to the closing costs, because taxes, insurance and other related costs are so much greater. Some lenders will offer the service of an extension and consolidation agreement, so that a jumbo refinancer will not have to pay for mortgage tax again on the same principal balance. In other cases, title insurance companies will offer up to a 50% discount, often required by law for those refinancing within 1 year to 10 years. The largest discount is for refinancing within one year. Some consumers seeking a jumbo mortgage choose to seek advice from a competent professional familiar with jumbo mortgage loans. OPTION 2 – Some investment brokers and/or large investment firms will lend money to their clients for jumbo luxury loans but secure it against liquid assets they manage for them. Often times these loan are lower in cost since their is collateral backing the loan to the borrower.