In an article posted by CNN, lenders are offering interest rates on jumbo mortgages at more than a quarter percentage point lower than conforming loans backed by Fannie Mae and Freddie Mac. Jumbo mortgages are loans to be above $417,000 and historically banks charge higher rates on them-in fact the exact opposite of today’s prevailing market. Jumbo loans were at .25 percentage points more then conventional loans but over the past couple of months, the tables have turned. Some nationwide banks have offered 30 year jumbo mortgages at 3.875%-4.125% with conforming, conventional loans at 4.25%-4.5%. Mortgage companies are realizing the value of these jumbo loan customers. With such great rates and higher amount loan the customer is less likely to refinance-they will stay with the bank forever. With the mortgage process getting tougher and tighter these higher end clients have more security and make the process easier, in most situations.
The rates on adjusted rate jumbo mortgages are also very appealing. Jumbo five year ARMs are being advertised at 2.375%. ARMs are not for everyone though. Before you jump on this appealing rate, be sure to understand this loan. After the first five years the interest rate can change (higher or lower) and every year after that so once the loan resets you can get trapped in higher interest rates. ARMs are best for homebuyers who are sure they won’t be staying in that home for more than 5 years or expect increases in their income.
With these rates, I have a great home listed for sale! Located in Plantation Bay BRAND NEW CONSTRUCTION! This home has every feature you could want from 3 car garage, outdoor kitchen, open floor plan, tile roof, granite counter tops, plus many more and is located on one of Flagler County’s nicest street. Check out the link below and schedule a private showing with me today.
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