Comments from readers of Housing Bubble Blog
“Wells Fargo just raised the interest rate on their jumbo mortgage to 8% this morning. Last week the rate was 6.78%.”
A jumbo is any mortage above $417,000. As an example, let’s say a jumbo mortgage is for $500,000. That jump in interest means $520 a month more in interest payments, with the new total monthly payment being $3300.
“Anyone else get chills when they read the CEO of IndyMacÃ¢â‚¬â„¢s letter?Ã¢â‚¬Â
Indeed, he says even top rated mortgages are no longer being sold in the private market because there are no buyers, calling the current situation “unprecedented.”
So, mortgages will be getting much more expensive (with lots more documentation required),Ã‚Â something which will have huge ramifications throughout the economy.