A newly listed Manhattan Beach property is aiming for the crown. Landing hot on the market with a $25 million asking price, a 5-bedroom oceanfront house with a coveted address on The Strand is looking to set a new real estate record.
Located at 1800 The Strand, the property sits on a prime beachfront corner lot, right at the heart of a vibrant beach scene. And not just any beach, but one of California’s finest.
The Strand, Manhattan Beach’s most exclusive address, stretches along the coastline of the Pacific Ocean, offering breathtaking ocean views and miles of clean, sandy beaches. Properties along The Strand are among the most desirable in California, offering direct beach access and proximity to high-end shops and gourmet restaurants.
Listed for $25 million with Bryn Stroyke (Co-Founder and Broker of Stroyke Properties Group at Bayside Real Estate Partners), 1800 The Strand has the potential to outshine all the other neighboring homes if it sells anywhere near its asking price.
So let’s take a closer look at the 5-bedroom home that can shatter Manhattan Beach’s real estate records.
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Specs & features
Clocking in at 5,329 square feet, the 2000-built home comes with 5 spacious bedrooms, 5.5 bathrooms, and a 5-car garage parking (including two vaulted spaces) plus room for 2 more vehicles on the apron.
Custom-built to be “the best home on The Strand”
“When the home was finished in 2000, it was built out at over $700/SF which was an extraordinary number [at the time],” the property’s listing agent tells us, sharing that the beach house was lauded as the “best home on the Strand when it was completed.”
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It has a dramatic staircase
“The most dramatic element of the home is the custom floating spiral wood staircase which had to be lowered into the home via a skylight opening using a large crane. It’s very dramatic, and is the first thing you see when you walk in the front door,” agent Bryn Stroyke shares exclusively with Fancy Pants Homes.
And an open floorplan to take in the ocean views
Per the listing, the home’s open floor plan was designed to maximize natural light and embrace stunning vistas of the ocean, Manhattan Beach Pier, Palos Verdes Peninsula, and Catalina Island. Its strategic location benefits from the southern exposure unique to north-corner lots, capturing iconic views that elevate every gathering.
Standout areas include a bright & airy Great Room and a bedroom with views for days
With its rooms practically inviting the ocean in through its extra large windows, picking a favorite space is quite the task. Even the property’s agent had a hard time choosing a favorite:
“The most impressive room is probably the main living area’s Great Room, although the Primary Bedroom might have a bone to pick with that selection.“
Sporting a “best in class location”
“It is rare to get a best in class property that is also in a best in class location –– this home is it. Many people consider 1800 The Strand to be the absolute center of the bullseye and the very best corner lot on the Strand,” Bryn Stroyke says about the property’s enviable location, further detailing why the corner lot is so desirable:
“Corners are special not just because of the enhanced views but also because you get side yard patios and can actually build 2′ wider… which may not seem like a lot but on 33′ wide lots… it’s a difference-maker.”
Aiming for the crown: setting a new record for the most expensive home on The Strand
Known for its premium prices, Manhattan Beach has seen many properties on The Strand compete for the title of the priciest home sold in this upscale area. A modern, $36M house with luxury resort vibes gave it a shot a couple of years back, as did a $22 million Selling Sunset-featured property.
The numbers to beat
There’s also a triple-lot property that’s reportedly eyeing a $150 million sale, but none have managed so far to upstage the current record holder, a $19.2 million house at 508 The Strand — sold by the same team that currently reps 1800 The Strand.
However, the highest sale recorded in the area is still a lot value property at 1000 The Strand which sold in 2017 for $21 million.
Priced at $25 million, 1800 The Strand has all the potential to dethrone both current record holders and become the most expensive house ever sold in Manhattan Beach.
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The average rate on a 30-year fixed mortgage is 7.68%, and on a 15-year fixed-rate mortgage, it’s 6.94%. The average rate on a 30-year jumbo mortgage is 7.65%.
*Data accurate as of April 19, 2024, the latest data available.
30-year fixed mortgage rates
The average mortgage rate for 30-year fixed loans rose today to 7.68% from 7.59% last week, according to data from Curinos. This is up from last month’s 7.40% and up from a year ago when it was 5.92%.
At the current 30-year fixed rate, you’ll pay about $710 each month for every $100,000 you borrow — up from about $704 last week.
Ready to buy? Compare the best mortgage lenders.
15-year fixed mortgage rates
The mortgage rates for 15-year fixed loans inched up today to 6.94% from 6.82% last week. Today’s rate is up from last month’s 6.64% and up from a year ago when it was 5.33%.
At the current 15-year fixed rate, you’ll pay about $894 each month for every $100,000 you borrow, up from about $887 last week.
30-year jumbo mortgage rates
The mortgage rates for 30-year jumbo loans rose today to 7.65% from 7.32% last week. This is up from last month’s 7.24% and up from 5.77% last year.
At the current 30-year jumbo rate, you’ll pay around $707 each month for every $100,000 you borrow, up from about $703 last week.
Methodology
To determine average mortgage rates, Curinos uses a standardized set of parameters. For conventional mortgages, the calculations are based on an owner-occupied, one-unit property with a loan amount of $350,000. For jumbo mortgages, the loan amount is $766,550. These calculations assume an 80% loan-to-value ratio, a credit score of 740 or higher and a 60-day lock period.
Frequently asked questions (FAQs)
On May 3, 2023, the Federal Reserve announced a third interest rate hike for the year — this time by 25 basis points. While the Fed doesn’t set mortgage rates, this increase in the federal funds rate could lead individual lenders to raise their home loan rates, too.
If you already have a mortgage, how this could affect your monthly payment will depend on if your loan has a fixed or adjustable rate. A fixed rate stays the same over the life of the loan, meaning your payments will never change. An adjustable rate, however, can fluctuate according to market conditions — which means you could see a rise in your monthly payments.
For example, if you take out an ARM for $250,000 with an interest rate of 5.5%, your initial monthly payments would be $1,719. But after the initial period is over, and the ARM switches to a variable rate, your payments could increase if the rate rises. If the rate rose just 25 basis points (5.75%), for instance, your payments would increase to $1,750.
If you’re not planning on keeping a home for a long time, an ARM could be the better option — especially if fixed-rate loans have much higher rates at the time. This is because ARMs tend to have lower rates to start than fixed-rate mortgages, though your rate can increase over time.
While a fixed-rate loan will have the same rate throughout the entire term, an ARM will start with a fixed rate for a set amount of time and then switch to a variable rate that can change for the remainder of your loan term. For example, a 5/1 ARM will have a fixed rate for five years (the “5” in 5/1), then switch to a variable rate that can change once a year (the “1” in 5/1).
Whether a mortgage rate buydown is the right choice for you will depend on your individual circumstances and financial goals. If you plan to stay in the home for a long period of time and can afford to pay for the buydown, it could make sense. But if you know you’ll move or refinance your mortgage before you break even on the cost of the buydown versus the lower monthly payments, then buying down your rate might not be worth it.
Buying down your rate can be permanent or temporary, which will impact the overall cost. A permanent buydown is also known as purchasing mortgage discount points — for each point, you’ll typically pay 1% of the loan amount in return for 0.25% off your rate.
Temporary buydowns, on the other hand, will reduce your interest rate to a certain point, and it will then increase each year until you hit the original rate. Some common temporary options are 2-1 and 1-0 terms, with the first number being how much your rate is reduced in the first year and the second number being the reduction for the following year. Unlike discount points that are paid for by the buyer, this type of buydown can be paid for by the lender, seller or homebuilder.
Blueprint is an independent publisher and comparison service, not an investment advisor. The information provided is for educational purposes only and we encourage you to seek personalized advice from qualified professionals regarding specific financial decisions. Past performance is not indicative of future results.
Blueprint has an advertiser disclosure policy. The opinions, analyses, reviews or recommendations expressed in this article are those of the Blueprint editorial staff alone. Blueprint adheres to strict editorial integrity standards. The information is accurate as of the publish date, but always check the provider’s website for the most current information.
Jamie Young is Lead Editor of loans and mortgages at USA TODAY Blueprint. She has been writing and editing professionally for 12 years. Previously, she worked for Forbes Advisor, Credible, LendingTree, Student Loan Hero, and GOBankingRates. Her work has also appeared on some of the best-known media outlets including Yahoo, Fox Business, Time, CBS News, AOL, MSN, and more. Jamie is passionate about finance, technology, and the Oxford comma. In her free time, she likes to game, play with her two crazy cats (Detective Snoop and his girl Friday), and try to keep up with her ever-growing plant collection.
Megan Horner is editorial director at USA TODAY Blueprint. She has over 10 years of experience in online publishing, mostly focused on credit cards and banking. Previously, she was the head of publishing at Finder.com where she led the team to publish personal finance content on credit cards, banking, loans, mortgages and more. Prior to that, she was an editor at Credit Karma. Megan has been featured in CreditCards.com, American Banker, Lifehacker and news broadcasts across the country. She has a bachelor’s degree in English and editing.
Ashley is a USA TODAY Blueprint loans and mortgages deputy editor who has worked in the online finance space since 2017. She’s passionate about creating helpful content that makes complicated financial topics easy to understand. She has previously worked at Forbes Advisor, Credible, LendingTree and Student Loan Hero. Her work has appeared on Fox Business and Yahoo. Ashley is also an artist and massive horror fan who had her short story “The Box” produced by the award-winning NoSleep Podcast. In her free time, she likes to draw, play video games, and hang out with her black cats, Salem and Binx.
FaZe Clan co-owner and uber-successful Youtuber Brian Rafat Awadis, better known as FaZe Rug, is moving up in the world. Or rather, moving out.
Known for his engaging content that spans from pranks to heartfelt vlogs, the YouTube phenomenon — who has a massive following of over 25 million subscribers — set up residence in a ritzy $4.4 million mansion located in Poway, California, a suburb of San Diego.
The purchase came after a stressful time that saw the Youtuber move back in with his parents due to the pressures of his growing fame, seeking comfort during a challenging time.
Now in a much better mental space, the successful content creator is enjoying life in his lavish new digs, often sharing clips filmed inside his two-story mansion. He’s even given his fans a full tour of the sprawling abode, and his followers had nothing but words of support and admiration.
And if one of his hit videos got you wondering where FaZe Rug lives, we have the scoop on the YouTube creator’s impressive Cali home.
Purchased in 2022 for $4.4M
In January 2022, FaZe Rug shelled out $4.4 million for a luxurious estate in the private gated community of The Heritage in Poway, one of the most popular suburbs around San Diego.
Sitting on a 1.04-acre lot, the 6,714-square-foot home is not the only structure on the property. There’s also an attached guest house, a gazebo, and a private sports court, with a total of 10 parking spaces.
The purchase marked a significant upgrade from his previous living arrangements, signaling a fresh start for the content creator. Prior to this, Rug had opened up about the decision to move back in with his parents for a while due to the pressures of his growing fame.
Property specs & amenities
FaZe Rug’s mansion spans a total of 6,714 square feet, featuring seven bedrooms, six full bathrooms, and one half bathroom.
The property, built in 2017, boasts modern amenities and sophisticated architecture that includes Mediterranean and Spanish influences. Highlights of the home include two grand staircases, a fully equipped open-concept kitchen, and a family room that seamlessly transitions into a stunning outdoor living space.
Beyond the basics: Plenty of unique features
What sets FaZe Rug’s house apart are its many playful, unique features, fully displayed during the video tour the Youtuber recorded for his fans.
A wall made entirely of LEGO bricks not only dazzles but hides miniature-themed rooms, providing quirky surprises that echo Rug’s creative and fun-loving personality.
These rooms feature everything from a LEGO spaceship to a tiny treasure trove, making them a hit not just in person but also as fun spots during his video tours.
It has a grand double staircase
Entering Rug’s mansion, you’re greeted by a grand double staircase reminiscent of a scene straight out of “Dynasty.”
This opulent entryway, complete with a sparkling chandelier and modern, airy aesthetics, sets the stage for the rest of the home’s lavish elements. It’s this kind of dramatic flair that gives the house its soap opera-worthy feel — luxurious, inviting, and just a tad over the top.
“The best backyard in the entire world”
FaZe Rug’s mansion is not just impressive on the inside; the outdoor amenities turn his backyard into a true entertainment paradise, making it perfect for both relaxation and hosting epic gatherings — not to mention shooting wildly creative videos.
The centerpiece is a large swimming pool with an integrated spa, perfect for cooling off or enjoying a soak under the California sun. Surrounding this is a luxurious patio area equipped with comfortable seating and an outdoor fireplace, and there’s also a private sports court and a mini golf course complete with a sandpit.
The backyard — which FaZe calls “the best backyard in the entire world — also comes with a full-scale outdoor kitchen, a pizza oven, and multiple fire pits. With breathtaking views of the surrounding mountains as a backdrop, the backyard offers not just fun and games but also a peaceful escape.
Fans were swept away by FaZe Rug’s house
When FaZe Rug shared his new home with his YouTube audience, the reactions were overwhelmingly positive.
Fans praised not only the house’s beauty and FaZe Rug’s taste but also the inspirational aspect of his success. Comments ranged from excitement about future content filmed in the home to personal messages of congratulations, emphasizing how Rug’s journey has motivated others to pursue their dreams.
“Congrats Rug, you deserve this dream house can’t wait to see your future vids at this house you bloody legend love your vids you deserve this house more than anything,” one fan shared.
“This is what happens when you’re humble and filled with gratitude! Stay you always Rug!” another chimed in.
See also: Inside JoJo Siwa’s $3.5 Million Mediterranean-Style Mansion
Netizens who’ve been following FaZe’s content since he first started out have expressed joy for the content creator’s success: “I have literally watched you grow up thru YouTube, this is nuts! Your home is so beautiful!!!! Congratulations Rug, for anyone dreaming big, you will do it. If you’re thinking about it, Just do it! Don’t worry about what anyone thinks, just worry about you and the ones who support you Let’s get it”
The new house’s resemblance to his former digs didn’t go unnoticed
Other fans were quick to point out the house’s resemblance with FaZe Rug’s parents’ house:
“Can we just talk about how the layout of this house is so similar to his parents house?!!! Maybe that’s what makes it feel so homey. Congrats rug it’s well deserved” one fan noted, with another echoing his observation: “It feels homie because the entrance looks like your parents’ house haha. Congrats,” @therealwaseem said.
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Legislation targeting LGBTQ+ communities is intensifying across U.S. states. Since 2022, the number of states banning gender-affirming care has risen from four to 23, and 21 states banned or restricted abortion. Two-thirds of states also currently have laws on the books that criminally penalize certain activities based on a person’s HIV-positive status.
Recent Washington Post analysis of FBI crime data reveals that hate crimes in K-12 schools have more than quadrupled in response to restrictive laws.
In 2017, long before the most recent legislation, a survey by National Public Radio, the Robert Wood Johnson Foundation and the Harvard T.H. Chan School of Public Health found more than half of the LGBTQ+ community regularly reported experiencing threats, harassment or violence due to their sexuality or gender identity.
It stands to reason that community members may wonder how to plan for their safety and well-being. If you need to move due to safety concerns — and have some time to prepare for the move — any financial planning you can do beforehand will go a long way. Consider the following six tips from financial and LGBTQ+ experts around the country.
How to financially prepare for a move (if you can)
1. Evaluate your assets and expenses
Taking stock of your income, expenses and assets can help you figure out what it will take to make your move a reality. Lindsey Young, a certified financial planner in Baltimore, says reviewing regular expenses, moving expenses and any costs you may face from temporary unemployment can help you understand where your money is going and plan where you want it to go.
Moving is expensive, and the LGBTQ+ community already tends to earn less than straight and cisgender workers on average, according to a Human Rights Campaign analysis of full-time LGBTQ+ workers and Bureau of Labor Statistics data. Transgender men and women, LGBTQ+ people of color and LGBTQ+ women face even more pronounced pay gaps and discrimination.
However, the LGBTQ+ community also has a rich history of supporting one another through mutual aid. So, check with your support network to see what’s available. Be aware that seeking help and support is normal, especially during challenging political moments.
2. Acquire cash on hand
Once you know how much money you need, consider how you might get it and create cash flow, says Young. For example, can you take on extra shifts at work? A second job? Can your chosen family or a GoFundMe make up the difference?
If you need to move but don’t have cash, says Young, consider what existing lines of credit you can access, such as a home equity line of credit, or HELOC, or credit card.
Also, consider whether you would want — or be able — to take on repaying new debt over the next several months or years. Are you more comfortable taking on debt to make a move happen, or would you prefer to tough it out where you are? Young says there is no correct answer, and it’s a matter of “understanding what their priorities are to really figure out what the right path forward is.”
3. Assemble your documents and back them up
Wherever you are, it’s always helpful to get your important documents together in one place. Make photocopies of anything important, such as medical records and personal IDs, and upload them to a safe cloud location so you can access them anywhere.
4. Specify your power of attorney
Officially designating who will make medical and financial decisions on your behalf is essential to putting someone you trust in charge if something happens to you. Make your will and choose your power of attorney so one isn’t chosen for you.
This step is crucial for anyone concerned that their biological family members (or the state) might try to challenge their wishes, even if they’re married. If your situation is complicated, finding an attorney who specializes in LGBTQ+ clients can help ensure that your wishes are followed despite any contentious family relationships you may have.
The risk of not planning can include that your wishes and loved ones aren’t honored, says Frank Summers, a certified financial planner in Charlotte, North Carolina. “I know of situations in which the estate of somebody who passed away went to a family member who did not approve of their relationship, who didn’t like gay people and proceeded to make the life of the surviving partner extraordinarily difficult when that person is dealing with a tremendous and profound grief,” says Summers.
5. Connect to members of your community, old and new
Connecting to an LGBTQ+ organization or group in a new city might make you feel safer, as well as possibly open up connections to new jobs, health care providers and relationships.
As director of transgender services at The Center on Colfax in Denver, Sable Schultz has seen a significant uptick in people connecting to peer support group services in person and online as they prepare to move to Colorado. Considered a “refugee” state, Colorado has sheltered thousands of newcomers in 2024, and its Medicaid coverage includes gender-affirming services.
Summers sees particular groups of people impacted by legislation — trans and nonbinary people, people wanting to start families, people with children and people who require ongoing care. Needing to access care and not knowing if you’ll be able to get it (or, if you can get access, not knowing if you’ll receive care with respect) can be overwhelming and scary, especially in a state like North Carolina that recently banned gender-affirming care and severely restricted abortion.
So wherever you’re headed, identify a support group, Queer Exchange, Facebook affinity group, or a social service provider that can connect you with housing, medical care, community or other support nearby.
6. Plan a safe travel route
If you’re getting on the road, consider how you can safely get from one place to another, including where you can use the restroom. Be sure to check in with local queer groups to identify where travelers have successfully stopped and stayed in the past.
If moving or traveling requires you to go through states targeting the LGBTQ+ community, particularly trans and nonbinary people, make a plan for how you can drive along large interstates and stop in larger towns and cities, or at least places that identify themselves as allies to the community.
What to do if you have to move and can’t prepare
Conversations about money aren’t usually related to an immediate life or death scenario, but for too many members of the LGBTQ+ community, that is the current reality. Safety is top of mind, especially given the ongoing rise in hate crimes.
Schultz describes Colorado as a refugee state because it mandates health care protections — including requiring gender-affirming care of Medicaid services — as well as general protections around gender identity and gender expression.
Other states where gender-affirming care is practiced include Alaska, California, Connecticut, Delaware, Hawaii, Illinois, Kansas, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Hampshire, New Jersey, New Mexico, New York, Oregon, Pennsylvania, Rhode Island, South Carolina, Vermont, Virginia, Washington, Wisconsin, and Wyoming; and Washington, D.C.
If you’d feel safer in any of these states, it’s possible even a lack of financial planning shouldn’t keep you from making the move. For those who are currently unhoused or living out of their car, says Schultz, sometimes “it’s at least safer to be unhoused here [in Colorado] than it would be to be wherever they were. And they can at least get the health care that they need.”
There’s no shame in doing what you must to get to a safer place where you are valued and wanted. And if you’re an ally to the LGBTQ+ community, check in on your loved one. Consider what emotional, financial or other support you can offer them during this challenging time.
Finance of America Companies (FOA), parent company of industry-leading reverse mortgage lender Finance of America Reverse (FAR), released a new “investor update” this week to update shareholders and other stakeholders on different elements of its reverse mortgage business including its strategic initiatives, business model and an update on its integration of American Advisors Group (AAG).
The company also provides commentary for its fourth quarter 2023 financial performance, assesses its market advantages and offers an assessment of impacts stemming from changes in Ginnie Mae’s Home Equity Conversion Mortgage (HECM)-backed Securities (HMBS) program.
Business update and market share
The company announced the availability of the update in a filing with the Securities and Exchange Commission (SEC). FOA begins the update by listing statistics illustrating the market potential of reverse mortgages, including the amount of home equity held by seniors ($13 trillion based on the Reverse Mortgage Market Index), a majority of seniors’ aging in place preferences and sources of anxiety in retirement.
Citing data from New View Advisors, FOA describes itself as “the largest Ginnie Mae HECM issuer for the last 10 years” when including AAG, with 37% of total 2023 issuance compared to Longbridge Financial (21%), Liberty Reverse Mortgage (16%) and Mutual of Omaha Mortgage (15%).
The company also said it “continues to evaluate new products to reach additional segments of the population facing a retirement gap,” and describes recent reverse mortgage industry consolidation following influential industry changes in 2017 and the 2022 bankruptcy of Reverse Mortgage Funding (RMF).
“As a result, the industry has consolidated from approximately 20 HECM issuers controlling 50% of the market in 2017 to only four today, and FOA’s market share has increased to 37% over that same period with the acquisition of AAG,” the company said.
Last July, the company sold its title insurance business to Essent Group, followed by strategic changes in September including a transition of its offshore-based operations to a team in the Philippines and the sale of “certain operations” of its home improvement lending business to Aqua Finance.
“Following the wind down of its forward mortgage business and sales of non-reverse segments including Lender Services, Commercial Originations and Home Improvement, FOA is focused solely on the reverse mortgage market,” the company said. “The Company has substantially completed its exit from all non-core businesses at the end of Q1’24.”
Reverse mortgage leader and ‘right-sizing,’ future goals
Following its acquisition of AAG in March 2023, the company became the industry’s leading reverse mortgage lender. This resulted in the company taking “aggressive actions to rightsize its originations and back-office headcount to align with continuing operations,” saying it reduced its overall headcount by roughly 30% from its Q2 2023 peak following the acquisition of AAG.
This has resulted in FOA having “less than 1,000 employees” as of the end of 2023, the company said, leaving the organization “well-positioned to evaluate opportunities for further industry consolidation,” the update explained.
The company is also transitioning into what it calls a “de-levered, cash-generation business model,” which it plans to accomplish by “monetizing its existing balance sheet while new originations generate free cash flow and long-term equity value.”
That positive free cash flow it is aiming for will potentially go toward new financing on newly-originated HECM mortgage servicing rights (HMSRs), and wants to reach a point where “incremental financing” on HMSRs create additional liquidity.
FHA, HMBS program changes
The company went into additional detail regarding changes handed down to the HMBS program by Ginnie Mae brought about by the bankruptcy of RMF. Last September, Ginnie Mae announced it would begin allowing the securitization of multiple participations related to a particular HECM in any one issuance month. In January, the government-owned company announced its plans to develop a new reverse mortgage-backed security product in response to industry liquidity challenges.
The Federal Housing Administration (FHA) announced a series of several different HECM servicing changes in November 2023 including allowing mortgage servicers to contact borrowers by phone to verify occupancy for the program’s required annual occupancy certification, as well as allowing mortgage servicers to assign a HECM to the U.S. Department of Housing and Urban Development (HUD) after the servicer funded a cure on delinquent obligations.
FOA noted several impacts on its business stemming from these changes, including increasing the “velocity” of tail securitizations; a reduction in the need for third-party financing; and increased value for the company’s HMSRs.
Ginnie Mae’s potential new HMBS product, referred to by some in the industry as “HMBS 2.0,” has other notable potential for FOA’s reverse mortgage business, the company explained.
“HMBS 2.0 may allow FoA to collapse ~$630 million of securitized buyout [unpaid principal balance (UPB)] and reissue these as [Ginnie Mae] securitizations, improving liquidity and freeing operating capital,” the company said.
In its Q4 2023 earnings report last month, FOA said that it narrowed its quarterly loss to $20 million and posted an overall improvement in its earnings to $164.7 million in fourth-quarter 2023.
The fourth-quarter loss was down from the $25 million in losses posted in Q3 2023, touted its HMBS market share and addressed remaining challenges related to the integration of AAG and two notices it received from the New York Stock Exchange (NYSE) about its stock price being out of compliance with continued listing standards.
Ginnie Mae this week issued a public notice to its issuer partners warning of an observation of higher prepayments in some of its mortgage-backed securities (MBS) programs, reminding issuers that a violation of its requirements could result in punitive action.
In a prior All Participants Memorandum (APM) issued in December 2017, Ginnie Mae described how it monitors prepayments in its MBS programs.
“Ginnie Mae is able to identify issuers with unusually fast prepayment rates through operational performance metrics,” the APM said. “Issuers with such prepayment rates should anticipate increased engagement from Ginnie Mae.”
The government-backed company monitors prepayments out of concern for habitual refinancing, since the MBS program has a vested interest in the seasoning of securities to avoid adverse impacts on the secondary market.
In the new guidance, Ginnie Mae explained recent sources of concern.
“Ginnie Mae has observed increased prepayment activity in some elements of its program,” the April 5 notice explained. “Ginnie Mae reminds issuers that it continues to monitor prepay activity and performance, and violations of requirements will be proactively addressed with issuers. This could include warranted sanctions as permitted by the MBS Guide and the relevant Guaranty Agreements.”
In January, Piper Sandler issued a note citing lower prepayment speeds as a tailwind for mortgage market performance projections in 2024.
In November 2023, Ginnie Mae pools remained relatively steady at 5.7%, and the low prepayment speeds “indicate mortgage servicing rights (MSR) amortization expense should continue to decline,” according to reporting by HousingWire’s Connie Kim. Quality MSRs correlate to those at lower risk of prepayment.
“We expect these tailwinds to continue despite the near-term drop in mortgage rates given very few borrowers have a mortgage rate above the current market rate. We would need to see a more persistent decline in 30-year fixed rates to up to 6% for a more meaningful pickup in prepay speeds,” the firm said in January.
Jumbo loans are large-amount mortgages, generally used to buy more expensive properties.
The size of a jumbo varies by geographic location, but it generally means a loan of more than $766,550 in most parts of the U.S. (as of 2024).
The interest rates on jumbo loans are different (usually higher) than those on regular, conforming mortgages.
Jumbo loans have stricter criteria for borrowers: a higher credit score, larger income/assets, and bigger down payments.
A jumbo loan is a mortgage for an amount that exceeds the standard loan size, as set by the federal government. If you’re buying a mansion — or just a regular home in a highly pricey neighborhood — you’ll need an extra amount of financing to get it.
It’s not just the principal amount, though: Everything on these mortgages can be super-sized. Let’s look at what jumbo loans are, and when you need one.
What is a jumbo loan?
As the name implies, a jumbo loan covers a larger-than-normal loan amount. More specifically, a jumbo loan is any mortgage that exceeds an area’s conforming loan limits, which are set yearly by the Federal Housing and Finance Agency (FHFA).
Many mortgage lenders offer jumbo loans up to $3 million or $5 million. You might be able to find jumbo loans in even higher amounts, especially if you work with a mortgage broker who specializes in them.
Jumbo loans can be used for primary residences, investment properties and vacation homes.
How do jumbo loans work?
Despite their “nonconforming” status, jumbo loans aren’t much different from traditional mortgages when it comes to the way they work. The payment schedules and other details are generally the same. Borrowers can get fixed- or adjustable-rate jumbo mortgages with various term options.
However, the interest rates on jumbo loans often differ from their conforming loan counterparts. Historically, they’ve been higher; however, the gap has closed of late. As of April 1, 2024, the 30-year jumbo rate was 7.06 percent, according to Bankrate’s survey of national lenders, vs. 6.93 percent for the traditional 30-year fixed loan. Part of the reason for this is an increase in guaranteed fees charged on conforming loans to lenders by Fannie Mae and Freddie Mac.
The maximum size of a jumbo loan varies by your mortgage lender and location, as does the exact qualifying guidelines. Because the market for jumbo loans is smaller, you might need to shop around a bit more to find one. It’s usually beneficial to work with a mortgage lender who specializes in them.
Jumbo loans vs. conforming loans
Most loans are conforming loans, meaning they conform to, or follow, specific criteria followed by Fannie Mae and Freddie Mac, the government-sponsored enterprises that buy most U.S. home loans. Jumbo loans do not adhere to these criteria; hence, they fall into the financing category of nonconforming loans.
You’ll have more buying power with a jumbo loan than with a conforming loan, but you’ll pay more in interest since your balance is bigger. To qualify for a jumbo loan, you’ll need a higher credit score — and possibly a higher income, down payment or more assets — than you would for a conforming loan. For example, U.S. Bank calls for a minimum 740 credit score to be considered for a jumbo loan versus 620 for a conforming loan.
Jumbo loan limits
You need a jumbo loan if you want to finance a property that costs more than a certain amount the FHFA sets for your state each year. If a mortgage exceeds the FHFA’s conforming loan limit, market-makers Fannie Mae and Freddie Mac won’t back or purchase it, thus making it a riskier proposition for a lender.
For 2024, the limit for conforming loans for most of the continental U.S. is $766,550. In Hawaii, Alaska and certain counties where median home prices are significantly higher than average, the conforming loan limit goes up, too — as high as $1,149,825.
Because homes that cost above these sums require a jumbo loan, these ceilings are often referred to as “jumbo loan limits” — though technically, they’re the starting points for jumbos.
Loan limits by state
The table below provides state-by-state conforming loan limits for 2024. In many states, the limits vary by county, depending on how high-cost the real estate market is there.
How to qualify for a jumbo loan
Jumbo lenders typically impose stricter underwriting guidelines than conforming mortgage lenders do. Because the loans aren’t backed by Fannie or Freddie, jumbo mortgages pose more risk to the lender. Overall, if you want to take out one of these hefty loans, you will need to make sure your financial profile is very good or excellent.
There are three common hurdles borrowers must clear to get approved for a jumbo loan: income, credit score and cash reserves (for making a down payment).
Jumbo loan income requirements
Yes, it’ll help if you have a large income — and, just as importantly, if you have a low-debt-to-income (DTI) ratio, the percentage of your monthly income that goes to debt payments. If your outgo is a significant part of your incoming — like more than one-third — you might not qualify for a jumbo loan unless your credit score is excellent or you have a sizable amount of reserves or liquid assets.
Jumbo loan credit score
Higher credit scores are needed to qualify for a jumbo versus a conforming loan. You will need, at the very least, a minimum score of 700 (most likely) to qualify for one. “The average is around 740, although I have seen some as low as 660,” says Robert Cohan, president of Carlyle Financial based in San Francisco. “[But] if you’re high-leveraged and you have a low credit score, it’s going to be hard to get a jumbo loan.”
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Keep in mind:
Most jumbo loans are conventional loans (offered by private lenders, vs. a government agency). One exception is the VA jumbo loan. Active military or veterans can qualify with a significantly lower credit score, like in the mid-to-low 600s.
Jumbo loan down payment
You may have to make a significant down payment to qualify for the jumbo loan. The down payment on a jumbo loan is typically 10 percent to 20 percent (and sometimes more). “Anything lower than a 10 percent down payment and you’re probably going to pay for it in higher rates,” says Cohan (assuming you can get the loan at all). Be prepared to show enough reserves, or liquid assets, to cover between six and 12 months’ mortgage payments.
Is a jumbo loan right for me?
Jumbos are meant for buyers with a substantial stable income and ample resources. You’ll need strong credit, a low debt-to-income ratio and at least six months of cash reserves to qualify.
Research the conforming loan limits in your region. If the homes you’re interested in buying do not fall within conforming loan guidelines, a jumbo loan might be an appropriate alternative — in fact, your only alternative, if you want to live in a high-cost county.
That said, a jumbo loan is not for you if it means you must stretch your finances to the brink to get one. Or if it means you’ll end up being house broke or house poor, meaning your homeownership costs squeeze out everything else in your budget.
If you can’t qualify for a jumbo loan — or don’t want one — you might consider a piggy-back loan arrangement, in which you take out two smaller mortgages, both conforming, instead.
Pros and cons of a jumbo loan
Jumbo loans can help you finance a large home purchase, however, you’ll pay more in interest over time than with a conforming loan. Here are some additional pros and cons:
Pros
Allows you to borrow more than a traditional mortgage
Competitive interest rates
Opportunity to buy a more expensive home/live in a high-cost region
Cons
A higher credit score is required to qualify, plus a larger annual income
Must have cash reserves to cover 6 to 12 months of payments
Higher interest rates
There may also be situations in which a jumbo loan loan makes sense. For instance:
If you have to live in a more expensive part of the country
If you see a good deal on a luxury piece of property
If the jumbo loan rates are close to conforming loan rates (why not get more bang for your financing buck)
If you have gotten, or expect to soon get, a windfall or big rise in income, so the cash reserve requirement is no problem (real estate isn’t the worst investment in the world)
Jumbo loan FAQ
If you would like to take out a jumbo mortgage, you’ll need to make sure your credit is very good to excellent, as a strong credit score is crucial for getting the best rates. Like any home loan, it is worth shopping around with lenders to see who might offer you the best rate. If you can put down a larger down payment — above and beyond the standard 20 percent — it may help you qualify for a lower rate as well.
The closing costs for a jumbo loan are similar to its conforming loan counterpart — 2 to 5 percent of the home’s purchase price. But while the percentage is the same, the property’s higher price means you’ll end up paying more in fees. For example, with 2 to 5 percent in closing costs, a loan on a $1 million dollar property could cost $20,000 to $50,000 in closing costs alone. For a $500,000 property, your costs would be half that range.
There are reduced tax benefits with a jumbo loan compared to a standard mortgage. For mortgages taken out after Dec. 16, 2017, the IRS allows for deducting home mortgage interest on the first $750,000 of mortgage debt, or $375,000 if you are married and file separate tax returns. So, taking out a jumbo loan could mean you will not be able to write off the entirety of your mortgage interest on federal tax returns each year. There are higher mortgage interest deductions, however, for homeowners whose mortgage was established before December 16, 2017. In that case, mortgage interest up to $1 million or $500,000 for those who are married filing separately, can be deducted on tax returns.
Yes, the Department of Veterans Affairs (VA) guarantees (it technically doesn’t offer) jumbo loans. The minimum financial requirements the VA sets are more lax than a conventional jumbo loan: you’ll need a 620 credit score and no cash reserves are required (though lenders may set higher requirements). If you’re a qualified buyer with your full VA entitlement, you may also not need a down payment. Bear in mind, though, that lenders may set their own stricter requirements.
You can refinance your jumbo loan, but it may be more difficult than refinancing a conforming loan. That’s largely because lenders have different financial requirements when it comes to jumbo mortgages, potentially limiting the pool of lenders you can work with. On top of that, jumbo loans come with higher closing costs, which makes your break-even period longer than it would with a conforming loan.
With a slick Insta post captioned, “black is beautiful from my skin to even stars in a jet black sky 🖤,” Trippie Redd, the hit machine, showed off his Florida mansion, and it’s as unapologetically bold as his music.
We talking about Michael Lamar White IV here, known to the beat-droppin world as Trippie Redd. The American rapper, singer, and songwriter ain’t just making waves — nah, he’s creating tsunamis with his tracks.
Since bursting into the scene in 2017 with his debut mixtape A Love Letter to You, Trippie has been serving us double platinum-certified singles like a gourmet chef. His studio albums, like Life’s a Trip and Pegasus soared to the top of the Billboard 200.
His artistic alchemy ain’t just in the studio; it spills over into his abode, as majestic and enigmatic as his anthems, recently unveiled on the rapper’s Instagram feed.
Drenched in the slickest shade from roof to floor, Trippie’s all-black Florida mansion is flipping the script on our vanilla home dreams.
The moment fans peeped at the majestic mansion dipped in the deepest of blacks, the comments section lit up like the Fourth of July:
“That AC bill gonna be twerkin’ harder than us at a Trippie concert!” one commenter said, hinting at the sizzling Florida heat and the year-round sun hitting the black exteriors from sunrise to sunset.
And they aren’t wrong! Imagine the digits on that electric bill that, as one commenter pointed out “could straight up pass for a mortgage payment in Cali!”
Another chimes in with, “Gives very much Adams family, I see the vision 😂,” catching the eerie but swanky aura. Yet another fan found similarities with another famous movie house, “Bro is living in Gru’s house,” referencing the famous Despicable Me character and his black house.
Machine Gun Kelly himself, the rap game’s own rocker — who now goes simply by MGK — slid into the comments, hailing Trippie as the “real dark knight” — yeah, Batman’s got nothin’ on this superstar.
And MGK likely knows what he’s talking about, as he and Trippie have been spending lots of time together preparing for the release of their joint album Genre:Sadboy which came out on March 29. So don’t go stepping on Trippie Redd’s toes.
But let’s break it down for real — Trippie’s been serving us hits since 2017 with his debut mixtape and hasn’t slowed down, not even to take a breath. From A Love Letter to You to Life’s a Trip, and soaring through the Billboard charts with bangers like Dark Knight Dummo and Topanga, the man’s been on a relentless roll.
So, it only makes sense his house hits as hard as his tracks, right?
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Grella filed a complaint against Kortas and his wife, Edna Montijo, in Maricopa County (Arizona) on March 19.
In total, Grella claims he discovered over $1.5 million worth of “secret, unauthorized” aircraft purchases and jet hangar lease payments – “and all of which Kortas purchased for himself or his wholly owned entities.”
The document claims breach of the operating agreement, breach of fiduciary duties, unjust enrichment, and conversion, among others allegations. It says Kortas’s “misconduct also supports his removal from the company as a member.”
Grella is asking for attorney fees and punitive damages. He also claims that Kortas converted NEXA funds and made unauthorized credit card purchases, which “have reduced Kortas’ membership percentage interest to below Grella’s membership percentage interest, such that Grella is now the majority owner of Nexa.”
The lawsuit states that Kortas had 50.5% of the company and Grella had a 49.5% share.
NEXA’s businesses
America’s largest mortgage brokerage, NEXA originated $6.29 billion in mortgage loans in 2023, according to Kortas. As of Monday, the company had 2,391 sponsored mortgage loan officers, per the Nationwide Multistate Licensing System (NMLS).
Grella told HousingWire that the mortgage business is profitable despite a challenging market. But that’s not the case for the aviation business. NEXA’s affiliated companies include AXEN Mortgage, a non-delegated correspondent shop, as well as a charter flight business – the latter of which was the source of disagreement between the partners.
The venture started in February 2022 when Kortas “persuaded” Grella to purchase two jets for NEXA’s corporate use and business purposes, per the lawsuit. The jets would be used to fly executives around the country as needed. However, there were also tax benefits to depreciating those assets, which would justify the investment. Another jet acquisition was made one month later.
Then, according to the lawsuit, in late 2022, Kortas “convinced” Grella to acquire an FAA-licensed charter company called Fly Dreams, LLC. The justification was that it would help charter the third jet and “dry-lease it, which would help defray NEXA’s aircraft expenses.”
“After NEXA closed on the purchase of Fly Dreams in early 2023, due to regulatory hurdles that Kortas had failed to flag or explain, NEXA was unable to charter the new jet with Fly Dreams,” the lawsuit states.
After that, specifically in 2023, Grella said Kortas tried to convince him to purchase an airplane flight school due to a pilot shortage (which he ended up doing independently), invest in an aircraft hangar, and purchase another jet.
Grella refused and claimed he faced retaliation, with Kortas treating him as an employee rather than a partner, depriving him of the use of the jets, and ceasing the payment of wage for both of them despite NEXA having millions in retained earnings.
Regarding the $24 million airplane-hangar leasehold, the lawsuit that “Grella informed the seller of the truth of Kortas’ inability to bind Nexa.” Then, through his legal counsel, Kortas “asserted that the aviation business is a legitimate business of Nexa and “Grella had consented to some aviation related purchases.” Therefore, according to Kortas, he was authorized to make the purchase on Nexa’s behalf without Grella’s consent, per the lawsuit.
The split
According to Grella, his “abrupt” termination occurred on March 20, after months of frustration related to what he calls a “serious breach of NEXA’s operating agreement, which requires profits to be distributed equally and for both partners to consent to activities not directly related to NEXA’s mortgage brokerage purposes.”
The lawsuit states that Kortas controls the company, bank accounts, and profit distributions. However, the operating agreement says that if the company engages in any other activity that is unrelated to the purpose of mortgage brokerage, it “requires unanimous member consent.”
“But after Kortas developed an aviation hobby, he began spending millions of dollars of company money for his own aircraft, without Grella’s consent, and, in many cases, without his knowledge,” the document states.
Grella, who started the business with Kortas in 2017 after leaving Equity Prime Mortgage, was responsible for handling the operations, including managing relationships with partners and lenders, overseeing production and supporting loan officers and the management team.
Kortas announced during a weekly Town Hall on Tuesday that Grella had been terminated. This means he will not be involved in the company’s daily operations or strategic decisions for the growth of the business. However, he remains a partner until the conclusion of a buyout negotiation.
According to Kortas, the buyout depends on NEXA’s appraisal. Despite his sadness at hearing what he called Grella’s “harmful rhetoric,” Grella appears to be motivated more by his unhappiness with the terms of his agreed-upon buyout than by concerns he claims to have about the related airplane business, Kortas added.
“Of course, Mr. Grella’s ongoing interference with NEXA’s business relationships and expectancies, which appears to be a blatant effort to pressure NEXA into relenting on those contractual rights that Mr. Grella is actually upset about, are doing nothing but causing the type of harm… harm that is irreparable in nature … that Mr. Grella professes to be taking issue with.”
“NEXA will not be bullied or blackmailed into foregoing its legal rights by a former employee who had himself already agreed to no longer be an owner of NEXA.”
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Mortgage rates are trending about the same across the board. Here are today’s average mortgage rates:
30-year fixed: 7.26%
15-year fixed: 6.48%
30-year jumbo: 7.32%
*Data accurate as of March 27, 2024, the latest data available.
30-year fixed mortgage rates
Today’s 30-year fixed mortgage rate is 7.26% which is about the same as last week’s 7.26%, according to data from Curinos. This is a decrease from last month’s 7.52%. Last year around the same time, 30-year fixed rates were 5.84%, which makes today’s rate much higher than it was a year ago.
At the current 30-year fixed rate, you’ll pay about $690 each month for every $100,000 you borrow — the same as last week.
Ready to buy? Compare the best mortgage lenders.
15-year fixed mortgage rates
Today’s 15-year fixed mortgage rate is 6.48%, about the same as last week’s 6.48%. This is a decrease from last month’s 6.71%. Last year around the same time, 15-year fixed rates were 5.16%, which makes today’s rate much higher than it was a year ago.
At the current 15-year fixed rate, you’ll pay about $873 each month for every $100,000 you borrow, down from about $880 last week.
30-year jumbo mortgage rates
Today’s 30-year jumbo mortgage rate is 7.32% which is higher than last week’s 7.24%. This is an increase from last month’s 7.23%. Last year around the same time, 30-year jumbo rates were 5.70%, which makes today’s rate around 2 percentage points higher than it was a year ago.
At the current 30-year jumbo rate, you’ll pay around $691 each month for every $100,000 you borrow, down from about $693 last week.
Methodology
To determine average mortgage rates, Curinos uses a standardized set of parameters. For conventional mortgages, the calculations are based on an owner-occupied, one-unit property with a loan amount of $350,000. For jumbo mortgages, the loan amount is $766,550. These calculations assume an 80% loan-to-value ratio, a credit score of 740 or higher and a 60-day lock period.
Frequently asked questions (FAQs)
On May 3, 2023, the Federal Reserve announced a third interest rate hike for the year — this time by 25 basis points. While the Fed doesn’t set mortgage rates, this increase in the federal funds rate could lead individual lenders to raise their home loan rates, too.
If you already have a mortgage, how this could affect your monthly payment will depend on if your loan has a fixed or adjustable rate. A fixed rate stays the same over the life of the loan, meaning your payments will never change. An adjustable rate, however, can fluctuate according to market conditions — which means you could see a rise in your monthly payments.
For example, if you take out an ARM for $250,000 with an interest rate of 5.5%, your initial monthly payments would be $1,719. But after the initial period is over, and the ARM switches to a variable rate, your payments could increase if the rate rises. If the rate rose just 25 basis points (5.75%), for instance, your payments would increase to $1,750.
If you’re not planning on keeping a home for a long time, an ARM could be the better option — especially if fixed-rate loans have much higher rates at the time. This is because ARMs tend to have lower rates to start than fixed-rate mortgages, though your rate can increase over time.
While a fixed-rate loan will have the same rate throughout the entire term, an ARM will start with a fixed rate for a set amount of time and then switch to a variable rate that can change for the remainder of your loan term. For example, a 5/1 ARM will have a fixed rate for five years (the “5” in 5/1), then switch to a variable rate that can change once a year (the “1” in 5/1).
Whether a mortgage rate buydown is the right choice for you will depend on your individual circumstances and financial goals. If you plan to stay in the home for a long period of time and can afford to pay for the buydown, it could make sense. But if you know you’ll move or refinance your mortgage before you break even on the cost of the buydown versus the lower monthly payments, then buying down your rate might not be worth it.
Buying down your rate can be permanent or temporary, which will impact the overall cost. A permanent buydown is also known as purchasing mortgage discount points — for each point, you’ll typically pay 1% of the loan amount in return for 0.25% off your rate.
Temporary buydowns, on the other hand, will reduce your interest rate to a certain point, and it will then increase each year until you hit the original rate. Some common temporary options are 2-1 and 1-0 terms, with the first number being how much your rate is reduced in the first year and the second number being the reduction for the following year. Unlike discount points that are paid for by the buyer, this type of buydown can be paid for by the lender, seller or homebuilder.
Blueprint is an independent publisher and comparison service, not an investment advisor. The information provided is for educational purposes only and we encourage you to seek personalized advice from qualified professionals regarding specific financial decisions. Past performance is not indicative of future results.
Blueprint has an advertiser disclosure policy. The opinions, analyses, reviews or recommendations expressed in this article are those of the Blueprint editorial staff alone. Blueprint adheres to strict editorial integrity standards. The information is accurate as of the publish date, but always check the provider’s website for the most current information.
Jamie Young is Lead Editor of loans and mortgages at USA TODAY Blueprint. She has been writing and editing professionally for 12 years. Previously, she worked for Forbes Advisor, Credible, LendingTree, Student Loan Hero, and GOBankingRates. Her work has also appeared on some of the best-known media outlets including Yahoo, Fox Business, Time, CBS News, AOL, MSN, and more. Jamie is passionate about finance, technology, and the Oxford comma. In her free time, she likes to game, play with her two crazy cats (Detective Snoop and his girl Friday), and try to keep up with her ever-growing plant collection.
Megan Horner is editorial director at USA TODAY Blueprint. She has over 10 years of experience in online publishing, mostly focused on credit cards and banking. Previously, she was the head of publishing at Finder.com where she led the team to publish personal finance content on credit cards, banking, loans, mortgages and more. Prior to that, she was an editor at Credit Karma. Megan has been featured in CreditCards.com, American Banker, Lifehacker and news broadcasts across the country. She has a bachelor’s degree in English and editing.
Ashley is a USA TODAY Blueprint loans and mortgages deputy editor who has worked in the online finance space since 2017. She’s passionate about creating helpful content that makes complicated financial topics easy to understand. She has previously worked at Forbes Advisor, Credible, LendingTree and Student Loan Hero. Her work has appeared on Fox Business and Yahoo. Ashley is also an artist and massive horror fan who had her short story “The Box” produced by the award-winning NoSleep Podcast. In her free time, she likes to draw, play video games, and hang out with her black cats, Salem and Binx.