Today’s Boston Herald has an article written by Jerry Kronenberg regarding the changes in conforming mortgage rates.
As of Jan. 1, the jumbo-conforming limit for Eastern Massachusetts borrowers will fall to as low as $417,000, down from as high as $729,750 today. (Rates vary by county.)
That’s bad news if you need, say, $500,000 to buy or refinance a Hub-area home.
Borrow the money today and you’ll pay about 5.875 percent annual interest on a 30-year fixed-rate jumbo-conforming loan.
But wait until Jan. 1 and you’ll have to pay “jumbo” rates, which currently run anywhere from 0.875 to 2.125 percentage points higher .All other things being equal, that means you’ll pay at least $285 more….
Click on the link below to read the full story.