Time is ticking on the Boston conforming loan limits clock. On October 1st, the maximum on jumbo-conforming loans, up to $729,750 $532,750.00 will drop to $465,750.00 in the Suffolk County area (Boston).
While October 1st seems like a few months away, for a mortgage to meet the current jumbo-conforming standards, it must close by September 30th. Mortgages in Boston typically take around 30 days or so to close, so the the time is really now or never.
After October 1, Boston luxury real estate buyers beware – you’re going to pay a premium, according to Bankrate.
If you’re not able to get a mortgage before the end of September and you have to get a nonconforming jumbo mortgage, expect to pay about half of a percentage point more in interest than you would pay for a mortgage that falls within the Fannie and Freddie limits.
So I’m going to ask the obvious question: The Boston luxury real estate market has been one of the bright spots in our local real estate market. What will happen after October 1st?
Are there any mortgage brokers, bank reps that might be reading this blog that can shed some light on what’s going on?
