Smart Money reports great news for high-end borrowers! Jumbo mortgage rates are at their lowest since 2003. A senior financial analyst at Bankrate.com is quoted as saying loans above $729,750, not backed by Fannie or Freddie, that have been in the 6.8% range have now moved lower to the 5.4% range. Keith Gumbinger with HSH Associates, a publisher of consumer loan information, concurs that jumbo loans are really beginning to be competitively priced. Spokespersons for both Citibank and Bank of America believe that they are offering competitive rates on jumbos. Bank of America’s Vijay Lala adds that jumbos are starting in the 5% range and that these loans will help lead the recovery in housing.
An example is a 30 year fixed rate mortgage at 6.86% that costs %5,347 per month. Refinancing that loan to a 5% rate would reduce payments by $952. A word of caution, underwriting standards remain strict, but buyers are finding it easier, as opposed to non-existing, to qualify for a new jumbo loan or refinance an existing loan. Many lenders require credit scores in the 700s and down payments of up to 40%.
Anne Mayberry 970-846-1425