Jumbo Mortgage Rates Fall as High End Market Sales Increase
By: Rosemary Rugnetta | November 16th, 2012
As the housing market continues to see improvements across the board, the same can be said for the high end property market. In recent months, sales of higher priced homes have been on the increase, especially in areas such as California. At the same time, jumbo mortgage rates have been on the decline.
There hasn’t been a better time for home buyers interested in this market to purchase a home. During the housing crisis, higher priced homes fell in value just like the rest of the real estate market. They, too, are beginning to see home prices increase this year, as well as, a decline in available inventory. As this is happening, home buyers are moving to make a purchase before property values go too high which is resulting in increasing sales.
All counties have loan limits for conforming mortgages, FHA loans and VA loans. The conforming loan limit is $417,000 across the country, but can be as high as $625,500 depending on the location. FHA loans have a loan limit of $729,750 which again depends on the location. VA loans can be as high as $1,000,000. Of course, all of these different types of mortgages have their own guidelines in place that must be followed. Any mortgage financing above these limits will require a true jumbo mortgage which is a private loan held by the lender.
While jumbo mortgages tend to have stricter guidelines for receiving approval, competition is heating up the market. Jumbo mortgage rates can be quite varied and lenders may even be flexible with guidelines when confronted with a well qualified borrower. These loans are considered risky, but they are also very profitable for the lender.
Current jumbo 30 year fixed mortgage rates are as low as 3.125%, jumbo 15 year fixed mortgage rates are as low as 2.625% and jumbo 5/1 ARM are as low as 2.250%. These are historically low rates for jumbo mortgages and require that borrowers have excellent credit in order to receive them. While the competition is out there, borrowers in this market should shop around for a good deal available. The online form is available and can be submitted without the need of a social security number. Here, jumbo mortgage information is available and will be received by the borrower almost instantly.
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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