Weekly rate round ups…

The national average of JUMBO mortgage rates on bankrate.com is down slightly this week.

30 yr Fixed Jumbo = 7.45% Prior week = 7.49%

5/1 JUMBO ARM = 6.38% Prior week = 7.49%

Rates are coming down a little this week, due to a dip in the 10yr treasury bond. I’m expecting the same for next week, rates should be around 7.40%

What is a jumbo mortgage?

A Jumbo mortgage is a home loan that does not conform to the guidelines established by Fannie Mae or Freddie Mac or exceeds the conventional loan limit is called a Jumbo mortgage loan. In most states, home loans that are between $417,000 to $1,000,000 are considered Jumbo Mortgages.

These loans have slightly higher interest rates than conventional home loans. Usually the spread is between one to two full points higher. If a conventional loan is @ 5.5%, more then likely jumbo rates will be around 6.5%. Since 2008, jumbo rates have skyrocketed. The reason for this is because investors who purchase jumbo loans, incur a bigger risk, there fore they past the risk to the borrower.

Anything over $1 million to $5 million is consider a Super Jumbo Mortgage Loan. These loans tend to have a little higher rate then Jumbo mortgage loans; although in some cases they are the same.

If you want up-to-the minute rate quotes from the top jumbo lenders in the market today, please contact us!

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