Jumbo Mortgage Rates | Mortgage Rates & Trends: Mortgage Blog

Mortgage Rates & Trends: Mortgage Blog

Jumbo Mortgage Loan Rates at 4.875%
By Staff on September 3, 2010

If you are planning to buy a luxury home in the heart of New York City, you may need a jumbo mortgage loan versus a conventional mortgage loan. A jumbo mortgage loan is a loan amount that exceeds the conforming loan limit set by Fannie Mae and Freddie Mac. With the mortgage rates declining, the same trend can be seen with jumbo mortgage rates giving some relief to high end borrowers.

Conforming limit can differ from location to location, for most parts of the nation $417,000 is the conforming limit. High cost areas such as the Westchester, NY Los Angeles, CA has a conforming limit up to $729,750. Any loan amounts higher than these are considered jumbo loans.

The criteria for getting a jumbo loan is more stringent than conventional mortgage loans, because of the higher loan amount as well as the risks related to it. A higher down payment of at least 20 percent, high credit score, and monthly mortgage payment not to be higher than 38 percent of the income before taxes are some of the requirements to get a jumbo mortgage loan.

Total Mortgage has some of the lowest jumbo mortgage rates in the nation. At Total Mortgage a 30 year fixed jumbo mortgage is available at 4.875% (5.098% APR) and a 15 year fixed jumbo mortgage rate is available at 4.000% (4.349% APR). If you have been thinking of buying that vacation home or a beach house lock these low rates before they are gone.

You can also check the conforming loan limit for your area with our Conforming Loan Limit Mortgage Calculator. For more information on jumbo mortgage rates and other mortgage products please call 877-868-2503 to speak with a licensed mortgage professional.

Mortgage rates are always changing, jumbo mortgage rates above are quoted at 11:30 A.M., on September 3, 2010.

*All rates shown are for 30 day rate locks. Longer locks available. The APR for conventional loan amounts is calculated using a loan amount of $417,000, 2 points, a $495 application fee, $500 loan processing fee, $715 underwriting fee and a $16 flood certification fee. The APR for jumbo loan amounts is calculated using a loan amount of $500,000, two points, a $495 application fee, $500 loan processing fee, $715 underwriting fee and a $16 flood certification fee. The APR for FHA loan amounts is calculated using a loan amount of $295,000, two points, a $495 application fee, $500 loan processing fee, $715 underwriting fee and a $16 flood certification fee. Some rates and fees may vary by state. All interest rates listed are for qualified applicants and are subject to mortgage approval. All rates are subject to change without notice.

Category: Mortgage Rates

Jumbo Mortgage Rates at Total Mortgage

By Staff on July 20, 2010

Total Mortgage currently has a wide variety of jumbo mortgages, all of which are available with some of the lowest jumbo mortgage rates. Jumbo mortgages are for loans that are above the conforming limit set by Fannie Mae and Freddie Mac. In most areas the conforming limit is $417,000, but in higher cost areas the conforming limit may be higher. To find out the conforming limit in your area try out our new conforming loan limits calculator.

Total Mortgage is currently offering both 30 year and 15 year fixed jumbo mortgages. A 30 year fixed jumbo mortgage is currently available with a 5.000% mortgage rate and a 5.203% APR. A 15 year fixed jumbo mortgage has a 4.000% rate and 4.349% APR.

There are also multiple jumbo adjustable rate mortgages (ARM) available at Total Mortgage. A 5/1 jumbo ARM is currently being offered with a 3.625% rate and a 3.657% APR. A 1/1 Jumbo ARM, with borrowers paying no points, is available with a 3.350% rate and a 3.957% APR. For mortgages with even higher loan amounts Total Mortgage offers Super Jumbo Mortgages.

Mortgage Product	Mortgage Rates	APR
30 Year Fixed Jumbo Mortgage	5.000%	5.203%
15 Year Fixed Jumbo Mortgage	4.000%	4.349%
5/1 ARM Jumbo Mortgage	3.625%	3.657%
1/1 ARM Jumbo Mortgage (0 points)	3.350%	3.957%

For more information on jumbo mortgages fill out this form and a mortgage expert will be with you shortly, or call 877-868-2503 for immediate assistance.

* All rates shown are for 30 day rate locks. Longer locks available. The APR for conventional loan amounts is calculated using a loan amount of $417,000, 2 points, a $495 application fee, $500 loan processing fee, $715 underwriting fee and a $16 flood certification fee. The APR for jumbo loan amounts is calculated using a loan amount of $500,000, two points, a $495 application fee, $500 loan processing fee, $715 underwriting fee and a $16 flood certification fee. The APR for FHA loan amounts is calculated using a loan amount of $295,000, two points, a $495 application fee, $500 loan processing fee, $715 underwriting fee and a $16 flood certification fee. Some rates and fees may vary by state. All interest rates listed are for qualified applicants and are subject to mortgage approval. All rates are subject to change without notice.

*All rates are posted with borrowers paying 2 points unless otherwise noted.

Jumbo Mortgage Securities Tempt Investors
By Michael Kraus on April 21, 2010

In contrast to jumbo home loans, loans for jumbo elephants are surprisingly easy to get.

The jumbo mortgage market was battered during the recession. While jumbo interest rates are extremely low compared to previous levels, it is also historically difficult to get a jumbo mortgage. The luxury home market was the subject of much speculation during the bubble years, and values crashed during the recession. Defaults on luxury homes made risk-averse lenders reluctant to issue large loans they would be forced to hold in their portfolios. Even those with pristine credit and ample income found it difficult to get a jumbo loan. All this may be changing soon.

Citigroup, JP Morgan Chase, and Redwood Trust (a REIT that focuses on jumbo mortgage assets) have partnered to sell $222 million worth of jumbo mortgage-backed securities (MBS). This would be the first private sale of such securities in over two years.

Private sales of MBS used to be common place, but since the housing collapse the mortgage industry has sold mortgages almost exclusively to the government sponsored entities (GSEs) Fannie Mae and Freddie Mac. The GSEs are prohibited by law from purchasing mortgages over $417,000 (although the limit goes up to $729,750 in some locations). As a result, lenders were forced to keep loans in their portfolios. As a result of the increased risk these lenders charge higher interest rates on jumbo mortgages.

If the sale of these securities is successful, it could prompt additional similar sales. Greg McBride of Bankrate.com commented: “Increasing investor appetite for bonds backed by large mortgages will help bring rates lower”. Lower jumbo mortgage rates and the increased availability of jumbo loans would be greatly beneficial to the luxury home market, which is still floundering.

The sale demonstrates how far credit markets have rebounded in recent years. The increased demand for such bonds can be at least partially attributed to the improving economy and the Federal Reserve’s purchase of $1.25 trillion worth of MBS.

How do you feel about the jumbo mortgage market? Share your opinion in the comments section below. Check back to this space for future developments in the jumbo mortgage sector.

Category: Mortgage Rates
Low Current Mortgage Rates Make “Luxury Living” Affordable
1 By Mike Battema on March 12, 2010

Whether you want to realize your dream of being able to say “I’ve got a little place by the beach” as a second home or are looking to make an investment for the long term, now is the perfect time to tap into the slowly rebounding luxury home market and take advantage of low current mortgage rates and record-low prices in some of the most lavish localities in the United States.

Home prices in the Hamptons are down 30% from their peak values

Over the past few years, home prices have dropped significantly (as much as 40% in some locations) from their 2007 peak. As the economy continues to stabilize, opportunistic investors and families seeking a second home have begun taking advantage of these bargain prices and affordable current mortgage rates. According to Jan Reuter, head of residential real estate at U.S. Trust Bank of America Private Wealth Management, “We’ve seen an up-tick in buying in just the last couple of months.” In Greenwich, CT, for example, realty brokers say that the final months of 2009 were close to record-setting in terms of sales volume, as borrowers took advantage of current mortgage rates in Connecticut. For information on how to get a second mortgage and capitalize on these near historic low mortgage rates and depressed property values, be sure to check out this article by John Walsh, President of Total Mortgage Services.

For investors and homeowners alike, it is important to emphasize that the economy is still in a state of recovery and that it is going to take some time for property values to increase. Nevertheless, it is also important to stress that the demand for homes in some of the country’s most prized locations is on the rise and that these low prices and low mortgage rates will not last forever. While the median price for a home in the Hamptons is currently $1.5 million, keep in mind that this represents a drop off of 30% from the peak sales prices of 2007. By taking advantage of low New York mortgage rates today, think of the return you will receive on your investment when the New York housing market and the national housing market fully recovers. Be sure to check out this article from the Wall Street Journal to read about more places to buy rich at low prices.

Total Mortgage Services is known for having some of the lowest current mortgage rates available. This is especially true for jumbo mortgage rates (jumbo loans are those with a loan amount over the industry standard conforming limit, set currently at $417,000), as we are able to offer qualified borrowers an incredibly low interest rate of 5.5% on a 30 year fixed jumbo mortgage (the average interest rate on a 30 year fixed jumbo loan is currently about 5.88%). From the golf courses of California to the sunny beaches of Florida, Total Mortgage Services can help you realize your secondary-home and investment dreams. Be sure to call one of our mortgage professionals at 877-868-2503 today.

Category: Mortgage Rates
Current Mortgage Rates Drop Back Below Percent
By Michael Kraus on March 5, 2010

Current mortgage rates fell back below 5 percent this week following promising signs for the economy. The average rate on 30-year fixed rate mortgages was 4.97 percent, eight basis points lower than the previous week.

Rates have been kept low by the Federal Reserve’s purchase of $1.25 billion worth of mortgage backed securities, which it will cease doing at the end of March. It is unclear what will happen when the Fed withdraws this support from the market. The federal government’s first home buyer tax credit also expires at the end of April. The consequence of its expiration also remains to be seen.

This news follows closely the news that the economy lost fewer jobs than expected in February. The unemployment rate stayed at 9.7 percent, while economists predicted it would rise to 9.8 percent. Stocks and oil rose in early trading on Friday after the employment news broke. There is guarded optimism that the employment picture may finally be stabilizing.

Retail sales also rose 3.7 percent in February, the biggest one-month gain since 2007. This is the third consecutive monthly retail increase. Factory orders also rose 1.7 percent in January, and durable goods purchases went up 2.6 percent. Factory orders have gone up nine out of the last ten months.

Although existing home sales dropped 7.6 percent in January, many economists believe this is due at least in part to the unusually bad weather across much of the country. Foreclosures were up in January over the previous year, and it will likely take several years for the housing market to totally recover, and that the recovery is largely predicated upon a better employment picture.

The Federal Reserve has repeatedly indicated that it will keep interest rates low in the near future to support the fledgling economic recovery, but that rates will likely increase sometime in 2010 to combat inflationary pressures.

Right now Total Mortgage Services is offering some of the best current mortgage rates in the nation, 30 year fixed rates starting at 4.5 percent, 30-year jumbo mortgage rates starting at 5.75 percent, and five-year adjustable mortgage rates starting at 3 percent.*

*Mortgage rates are volatile and may change multiple times in a day. All mortgage rates quoted as of 10AM on Friday, March 5th.

Total Mortgage Services would like to assist you with all your mortgage needs. To speak with one of our mortgage experts, call us today at 888-868-2509.

Category: Mortgage Rates, Stimulus