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A comment on Does It Make Sense for Programmers to Move to the Bay Area?. Parent comment

Re:Does It Make Sense for Programmers to Move to the Bay Area? by rconti on Wednesday December 14, 2016 @03:50PM (#13179533)
Your comment doesn't really make any sense, because there is no benefit to having a conforming loan. In fact, there are drawbacks. Recent data showed that jumbo loan rates were LOWER than the equivalent conforming loan. We bought with 10% down on a jumbo and because it's not federally-backed you don't have to pay PMI. Mortgage, taxes, insurance, that's it.

Also, I don't know anybody who got that kind of parental help or put $500k down.

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Re:Does It Make Sense for Programmers to Move to the Bay Area? by nostrademons on Wednesday December 14, 2016 @03:55PM (#13179563)
That was the reasoning given by a coworker who did this, and he put $500K down. I personally know at least 3 people who've bought Bay Area houses/condos in the $1.1-$1.2M range with multi-hundred-K parental help.
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Re:Does It Make Sense for Programmers to Move to the Bay Area? by rconti on Wednesday December 14, 2016 @04:07PM (#13179675)
November 2013: http://money.cnn.com/2013/11/12/real_estate/jumbo-mortgages/

September 2016: http://www.bankrate.com/financing/mortgages/jumbo-home-rates...

From TFA "the jumbo loan is supposed to come with a slightly higher rate". IMO the rate should be a LOT higher; otherwise PMI is always a losing proposition. Bizarre market forces indeed.

It was certainly surprising/counterintuitive that jumbo rates would be lower than conforming, but even when they're not, it sounds like they're incredibly close.

That said, if someone wanted to throw $500k at me to buy a house, I wouldn't turn it down :)

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