In The Bank of New York Mellon v. Reyes, No.: 3D12-1900 (Fla. 3d DCA 2013), the Bank appealed the denial of its Florida Rule of Civil Procedure 1.540(b) motion to set aside a default final judgment nullifying an unpaid promissory note. The action began when the Bank filed a complaint to foreclose a mortgage securing a $293,500 promissory note and to reestablish that note. Reyes responded that the mortgage at issue had been modified and that it was not in default. Further, Reyes filed a counterclaim alleging that the Bank had breached its contract by seeking to foreclose the mortgage and sought to nullify the mortgage.
On August 9, the average rate for a 30-year fixed-rate jumbo mortgage was 4.69% . The average rate for a 30-year fixed-rate conforming loan was 4.51 percent. The difference, 0.18 percent, is the closest the rates have been in five years. Jumbo mortgage rates are usually closer to a quarter percentage point higher than conforming loan rates. In 2008, the difference was as high as 1.8 percent. Recently, Jumbo mortgages have boosted luxury home sales.
Jumbo borrowers are those needing loans for more than $417,000 in most places or $625,500 in high-price markets. Borrowers need an excellent credit score to obtain a jumbo mortgage and generally receive a better rate for a higher score. Additionally, borrowers usually need to show more reserves set aside because the monthly payments are larger. Jumbo loans typically require a down payment of at least 20%.
Lenders are originating more and more jumbo loans. Some lenders may even offer jumbo rates lower than conforming loans. Big lenders may use jumbo loans to build relationships with high net worth customers. According to Inside Mortgage Finance, origination volume is expected to hit $220 billion by the end of the year. The terms of real estate financing are at least as important as the terms of the acquisition. Our Fort Lauderdale luxury real estate lawyers assist clients in negotiating and obtaining loan documents from the lender in attempt to achieve the best potential result.