The following rates come to me courtesy of Joe Bailey from Bailey Mortgage.
Conforming – $417,000. Loans below $417,000 are called “conforming.” They have the lowest rates. Today the rate for a conforming 30-year fixed with no points is 5.%.
Typically a conforming loan requires 20% down. If $417,000 is your loan amount and you have 20% down, your purchase price would be $521,250.
Here are some examples of what $520,000 can get you in San Francisco:
946 Capitol: 4BR home in Oceanview neighborhood. Not having seen the inside of this house, I’m mystified by how you can fit four bedrooms into something that looks that tiny, and can’t help but question whether all of them are legal. You will also be somewhat challenged by the lack of parking in this home. Location is not bad, however. Foggy, but the neighborhood has improved over the years.
310 Stanyan #103 1BR/1BA condo nestled between Lone Mountain and Haight Ashbury. This location is perfect for USF students. Street is kind of busy but you are right across street from Golden Gate Park and it’s a great, central location.
Jumbo Conforming – from $417 k-$729,750. Because San Francisco is one of the country’s most expensive housing markets, we get special dispensation from the Fed and are allowed to charge lower rates for loans between $417,000 and $729,750. They are higher than plain conforming rates, but not as bad as “super-jumbo” rates for loans above $729,750. The rate for a Jumbo Conforming today is 5.125% with no points.
If $729,750 is your loan amount and you have 20% down, your purchase price would be $912,187. Here are a couple of examples of what $912,000 can buy you in San Francisco:
280 Union – This unit intrigues me. It’s only a one-bedroom condo, but the square footage is big at 1325. Telegraph Hill location. Alcatraz and Bay views. It’s bank-owned and they have three offers on the table right now, all significantly below the $905,000 listing price.
724 Teresita Boulevard – 3BR/2BA Miraloma Park house. Miraloma Park is a sought-after family-friendly residential neighborhood with Mediterranean and Marina style architecture. To get to Miraloma, picture yourself on Market Street driving away from the Ferry Building. Keep going, going, and going until you rise up beyond the Castro and Upper Market District. Eventually you’ll hit the entrance to Miraloma Park. You’ll know you’re there because of the Mollie Stone’s supermarket. 724 Teresita is overpriced. Houses like it generally trade below $850,000.
Above $729,500 you head into super-jumbo land where rates pop up to 5.75% with no points.