Competition Continues for Jumbo Loans
By: Rosemary Rugnetta | December 28th, 2012
Mortgage rates have remained low throughout 2012 and have ultimately saved borrowers a significant amount of money. The same can be said for jumbo mortgage rates which is causing competition to continue for jumbo loans throughout the year.
Jumbo mortgage rates are typically higher than conforming and FHA mortgage rates, although these days, the difference is much less than in the past. At the current time, jumbo 30 year fixed mortgage rates are as low as 3.250% which is, in some instances, better than FHA 30 year fixed mortgage rates. This alone makes the jumbo loan much more attractive than the current FHA jumbo loan.
As lenders continue to try to attract wealthy borrowers, jumbo rates have dropped and become more competitive. At the same time, even guidelines can be flexible when lenders are faced with a loan application from a well qualified borrower. Attractive jumbo interest rates are being offered at the same time as high end home buyers have also been out there grabbing up bargain priced luxury homes. Although these homes are expensive, the prices are still reduced as compared to the peak of the housing boom.
Borrowers who are in need of jumbo loans must watch jumbo interest rates closely. Sometimes, when mortgage applications for purchase and refinances decrease, jumbo loan rates will also decrease as lenders try to attract more business. These loans are commonly held within a lender’s portfolio and are a source of profit for them. Even though they may appear risky, the profitability offered with jumbo mortgages has made more lenders join this end of the mortgage market.
For more information about jumbo mortgages and low jumbo interest rates, the online form is available for submission and will return a response almost instantly.
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