Median Home Prices – Your Nashville Loan Options

If you live in Nashville, you’ve been watching homes fly off the market and median home prices fly up with them.

So if you’re shopping in the area, you may face a fork in the road between a Conventional or Jumbo Loan for your next purchase.

What’s the Sitch?

As of May 2022, Redfin reported that the median single-family home price in Davidson County is $500,000. This is 22% higher than the previous year. This number has also grown by about $50,000 since the start of 2022 alone✝. Meanwhile, Davidson County’s conforming loan limit sits at $694,600. 

If median home prices continue to rise, you may face a situation where your purchase is teetering between conventional and jumbo loan territory.

Cost – Let’s Break it Down

Home #1 is $550,000; this is just above the median home price. You put 10% down at a 30-Year Fixed Rate. At the current interest rate* of 5.875% with 6.069% APR, your monthly payment is going to come in around $3,290 (see assumptions below).

Home #2 falls into Jumbo territory at $725,000. You put 10% down on a 30-Year Fixed Jumbo Loan. Given the current UHL Jumbo interest rate* at 5.375% with 5.485% APR, your monthly payment here comes in at $4,074 (see assumptions below).

A $175,000 difference in total home price, yet only a $784 difference in the monthly payment. 

Other Considerations

Typically, both conventional and Jumbo loans require you to pay monthly PMI (Private Mortgage Insurance) if you put less than 20% down on your home.

Additionally, Jumbo Loans require a higher qualifying credit score and stricter debt-to-income ratios than most conventional loans. A Jumbo Loan from UHL usually requires a minimum credit score of 700.

Let’s Talk About It

At the end of the day, the loan you choose might come down to your budget, what you’re looking for in a home, or simply what’s best for you.

But when you work with UHL, we want you to understand the meaning of market trends like median home prices so you can choose the best option for you. And as always, our team is a call away to walk you through them.

✝ Redfin. (n.d.). Nashville housing market. Retrieved on June 23, 2022 from https://www.redfin.com/city/13415/TN/Nashville/housing-market 

*Rates current as of June 23, 2022

ASSUMPTIONS: Based on a 700 credit score or higher and 60-day lock term. Private Mortgage Insurance (PMI) will be required when putting less than 20% down. Monthly payment listed here does not include PMI, taxes and insurance premiums. The actual payment amount will be greater. APR stands for annual percentage rate. Subject to underwriting requirements. Not all applicants will qualify.