Post-Crisis Paradox Continues as Jumbo Beats Conforming

By Jann Swanson

Posted To: MND NewsWire

Jumbo loans have historically been more expensive for borrowers than those the meet the “conforming” loan limit – which is currently set at $424,100. CoreLogic, in a new analysis, says that changed several years ago. Starting in mid-2013, borrowing through a jumbo loan has been cheaper than using a conforming one. In the first quarter of 2017, the difference averaged 21 basis points . Many jumbo loans are, in a sense, conforming as well, falling within those special loan limits set on a county by county basis for GSE and FHA lending in higher cost areas. By their nature these jumbos are not available to borrowers in many markets. It is unclear whether jumbo loans from private lenders are included in the analysis. Archana Pradhan, senior professional economist, writes in the CoreLogic Insights…(read more)

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