Borrowing money for luxury real estate just got cheaper. Typically money borrowed for luxury real estate is considered a jumbo loan, a loan of more than $729,750. Jumbo loans traditionally hold higher interest rates and are not backed by government sponsored agencies. The current interest rate for a jumbo loan is 5.48%, rivaling those of traditional 30 year fixed rate mortgages.

The low rates for jumbo loans make purchasing luxury real estate much more affordable than in recent years. Currently luxury home values are lower than they have been, combine that with the low interest rates and thousands, if not hundreds of thousands, of dollars can be saved over the lifetime of a loan, adding to the affordability level.

The housing recovery has focused on the lower end of real estate, through tax credits and low mortgage rates. The new low rates for jumbo mortgages should give the higher end a well-needed boost. The luxury real estate market is certain to get a lift from the newly reduced interest rates, luring both buyers and lenders.

Click here to read a recent article from the Wall Street Journal on low jumbo rates.

It is a great time to buy luxury real estate. Not only are mortgage rates once again at historic lows, but real estate values are low and inventory is high. It is a buyer’s market, which means it is an exceptionally great time to invest in a larger, nicer home, a better time in fact than has been seen in years. A recent article in the Wall Street Journal mentions that a larger home gives more bang for the buck, and these days that is exactly what people are looking for.

It has taken a bit longer for sellers of high end homes to come to grips with reality. That reality is that it is no longer a seller’s market and that sellers are no longer in control. What that means is that sellers now feel the need to not only come down in price but do a better job of haggling when they get an offer, after-all it is an unknown when the next offer may arrive.

Click here to read a recent article from the Wall Street Journal on why it is a good time to buy a bigger, nicer home.