Big-dollar borrowers, you’re in luck. The average rate on a 30-year jumbo mortgage held steady this week, even as rates on most other home financing products went up.
Bankrate’s weekly survey showed that jumbo loans maintained their average 3.41 percent interest, right where they were last week.
A jumbo mortgage, also known as a non-conforming loan, exceeds the maximum value of financing on a loan that is seen as suitable for that bundling into a mortgage-backed security. In most areas of the country, you’ll need to get a jumbo mortgage if you’re planning to finance more than $548,250 of your home purchase. In more expensive areas, that threshold jumps to $822,375.
Whether or not you need a jumbo mortgage has everything to do with how much financing you’re requesting, not with the actual sale price in your real estate transaction. You could get a conforming loan on a multimillion dollar home if your down payment makes up the difference between the price and the jumbo mortgage threshold.
Most mortgage experts in Bankrate’s weekly poll predicted that rates will rise next week.
“I love the fresh smell of the U.S. economy getting to the point where we can reopen everything again,” said Logan Mohtashami, a housing analyst at HousingWire, based in Irvine, California. “Honestly, mortgage rates were artificially low, under 3 percent, because COVID-19 isn’t a normal economic event.”