Banks Don’t Love Rich Mortgage Borrowers as Much as They Used To
Banking System, which had been offering the adjustable-rate jumbo loan she wanted to use, said it is focused on building customer relationships, and as a result, “jumbo mortgages are primarily reserved for customers." Christine Johnson, a marketing manager in Chicago, has been looking with her family of four for a house with a backyard. They wanted to put down 20% on a $1 million home and take out a jumbo loan.
But they could get a lower rate if they put down 30% and got a conforming mortgage, industry parlance that means it is eligible to be sold to investors with government backing. They have been considering coming up with the extra cash by selling the condo they currently live in, and by borrowing against retirement accounts.
They haven’t yet had an offer accepted, so they haven’t had to decide. “Depending on where interest rates are, it will dictate what we are doing," she said.
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