Jumbo Fixed Rates vs. Jumbo Adjustable Rates (Video)
By: Rosemary Rugnetta | December 31st, 2012
Jumbo mortgages have bounced back this year as sales in the high end property market have improved, especially during the fourth quarter. Regular jumbo loans are non-conforming mortgages which are usually held by the lender in their portfolio due to the lack of a secondary market. Since jumbo loan rates are usually higher than regular conforming and FHA mortgage rates, monthly mortgage payments for jumbo loans are also higher. For borrowers looking for a jumbo loan, a comparison of a fixed rate jumbo loan and an jumbo adjustable rate mortgage is necessary.
Every borrower is unique and will have a different set of circumstances which is used as a guide to picking the right type of jumbo mortgage. This video explains the differences between a jumbo fixed mortgage and jumbo adjustable mortgage and when a borrower might decide to use each one.
Jumbo mortgage rates have been at historic lows, including jumbo fixed interest rates. Due to this, taking the risk of an adjustable loan may not be necessary for many borrowers. The final decision should be one that the borrower is comfortable with and will continue to be for years to come.
FreeRateUpdate.com surveys more than two dozen wholesale and direct lenders’ rate sheets to determine the most accurate mortgage rates available to well qualified consumers at about a 1 point origination fee.
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