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Mortgage market update

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Not necessarily a Maine real estate update but certainly something that pertains to any would be buyer or seller of property in Maine. Â

A Credit Market update from Garrett Ryan an excellent mortgage broker and friend here in Maine explaining some of the recent changes in the lending market.Â

“Two big changes that evolved last week were to Jumbo & Alt-A loans.  The secondary market has lost it’s appetite for Jumbo loans causing lenders to hold their 417K+ notes instead of bundling them up for the secondary market.  To make holding the loans more profitable, lenders implemented rate hikes to all jumbo loans putting the average Jumbo around 7.5% (yikes!)  Alt-A loans are a program with a conforming lender, but require less documentation.  Such as no income verification, but we will verify employment and assets.  About 60-70% of the lenders cancelled their ALT-A programs.  My guess is additional lenders will follow suit in the coming weeks.” 

Click here to email Garrett Ryan at Maine Mortage or give him a call at 883-5063. 

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