Luxury Home Purchase Guide For The Affluent
According to the report published by the National Association of Realtors and Professional Madison Realtor, titled Existing Home Sales Report, it has been found that the housing market is in a recovery mode.
One of the most outstanding data provided in the report says that since July 2018, properties worth over $500,000 comprised about 11% of all the confirmed sales and properties worth below $100,000 comprised about 20% of the aggregate sales.
Moreover, the NAR’s report also revealed that there was a 19% jump in sales of properties worth upwards of $1 million during the month of July 2018. We saw this in our Condos for sale in Madison WI. This increment in sales of luxury properties has been attributed to the slumped jumbo mortgage rates that are fueling the demand for more such properties.
High net-worth individuals can have a look at the current jumbo mortgage rates which have been given below to serve as a reference while shopping for a luxury property:
The jumbo mortgages listed above have an origination cost of about 0.7-1% charged on them. However, only homebuyers with a steady source of income along with an impressive credit rating are eligible to take advantage of these rates.
The real estate market is positive for buying luxury properties. It forecasts the return of the private mortgage lenders who gave around $38 billion as jumbo mortgages to buyers during the past 2 quarters of 2018. Therefore, people who want to buy high-end properties should follow the below mentioned steps in order to get a jumbo mortgage loan to finance their luxurious purchase:
Finally, luxury homebuyers should understand the closing costs of jumbo mortgages. Many times, lenders dupe borrowers with the offer of a reduced interest rate but make up the deficiency by including additional costs like processing fees, origination charges, etc.