5 hot year-end home mortgage trends

Low jumbos attract few takers
6 of 7
Luxurious house

In the last few months, rates on jumbo mortgages (home loans for more than $729,750) have been falling faster than rates on other mortgages. Now, rates on jumbos are downright attractive.

That's quite a turnaround. Jumbo rates skyrocketed in the summer of 2007 amid the mortgage meltdown and remained high for a long time. A year ago, the benchmark jumbo was 1.2 percentage points higher than the conforming 30-year fixed. Lately, it's been less than three-quarters of a percentage point higher.

Rates are low, but relatively few people are refinancing their jumbo loans because underwriting is strict, Anastos says.

"Some of the refinancing on a jumbo loan takes so much longer than on a conforming loan," he says.

Jumbos are not guaranteed by Fannie Mae or Freddie Mac. Consequently, jumbo rates are higher because they pose more risk to the lender.




          Connect with us


Holden Lewis

Brexit means lock your mortgage rate ASAP

Lock your mortgage rate now because today's rate plunge might not last long. That's today's advice from mortgage brokers and loan officers.  ... Read more


Connect with us