Talk about taking advantage of those low low rates on the 30-year fixed!
I don't have it on my authority, but it is being reported widely and wildly that newly divorced Tiger Woods took out a $54.5 million mortgage on his Jupiter Island, Florida estate where he is currently building a mansion. He reportedly bought the land (three parcels) for around $44 million in cash before all his marital issues. Listing himself as a "single man" in documents obtained by TMZ, it's a 15-year; don't know if it's fixed or adjustable rate. The estate will supposedly include several pools, a fitness center, and an "oxygen therapy" room; that last one of course coming in handy for anyone who takes out that sized loan in today's housing market.
Just for Tiger's information, Florida has the third highest foreclosure rate in the nation, according to RealtyTrac. One in 171 homes there received some kind of foreclosure filing in July.
Okay, let's talk some basics now. First, what kind of rate does one get on a clearly non-conforming, hyper-jumbo loan? What are the underwriting criteria? And why would someone as filthy rich as Tiger, even after paying out his hefty divorce settlement, need a mortgage?
I turn, as often, to the expert:
"Hard to say on the rate. Just don’t have a good read on what a superjumbo loan that may or may not be a principal residence would cost," admits Greg McBride over at Bankrate.com. Tiger, by the way, has also just put down some roots in Manhattan, and was reportedly seen in a trendy downtown neighborhood this week. "Also requires assumptions as to down payment, income documentation, type of loan."