When considering financing for high-priced homes in Northeastern Pennsylvania and the Lehigh Valley, there are several regional factors to keep in mind, especially concerning jumbo mortgage rates and local tax and value considerations.

Jumbo Mortgage Rates

In NEPA and the Lehigh Valley, jumbo loans are essential for financing luxury or high-priced properties that exceed the conforming loan limits (CLL) set by Fannie Mae and Freddie Mac. The CLL for NEPA and Lehigh Valley is $766,550.

For more information, see the Conforming Loan Limit values webpage at https://www.fhfa.gov/data/conforming-loan-limit-cll-values.

Many luxury properties are available throughout the Lehigh Valley and Northeastern Pennsylvania, including expansive estate homes and scenic waterfront properties. These high-end homes often come with substantial price tags, typically requiring jumbo loans to finance their purchase.

Interest rates for jumbo loans in this region might differ slightly from national averages due to local economic conditions and the real estate market’s stability. See our Rates. Generally, jumbo loans have higher interest rates compared to conforming loans due to the greater risk involved with larger loan amounts. However, rates can be competitive, especially for borrowers with excellent credit histories and significant down payments.

Local Financial Considerations

Property Taxes: Like many areas, Northeastern Pennsylvania and the Lehigh Valley base property taxes on assessed property values. High-priced homes, therefore, come with higher tax liabilities. Luzerne, Lackawanna, Monroe, Northampton, and Lehigh counties, for example, may have varying rates and assessment practices that can significantly affect annual property tax expenses.

Assessment of Property Value: The value of high-priced homes can be influenced by several factors, including location, property size, and local real estate market trends. For instance, properties located in scenic areas like the Pocono Mountains may see different valuation trends compared to more urban settings, such as Bethlehem and Easton.

Market Volatility: The demand for luxury property tends to be lower than that for mid-priced homes. This means that high-priced homes may take longer to sell and can be subject to greater pricing fluctuations based on economic conditions and buyer demand in the luxury market segment.

Planning and Advice

Prospective buyers of high-priced homes in Northeastern Pennsylvania should contact a Fidelity Bank Mortgage Consultant who understands the nuances of the region’s luxury market. These professionals can provide valuable insights and help secure financing terms that align with the buyer’s financial strategy. Use our Chat to get connected with a dedicated Mortgage Consultant today.