Are you going to be able to get your jumbo loan at a good interest rate?
According to Holden Lewis, the answer is yes, finally.
Lenders just might be getting serious about underwriting the new conforming jumbo mortgages for more than $417,000. Word is that the new conforming jumbos sport a rate about three-eighths to half of a percentage point higher than rates for conforming loans …
… The new conforming jumbo mortgages officially became available at the beginning of April. But they weren’t priced differently from regular jumbo loans. The lack of a rate differential defeated Congress’s purpose in creating the jumbo-conforming. Teeth were gnashed.
On Friday afternoon, Fannie Mae announced that it would buy jumbo-conforming mortgages for the same prices as conforming loans. Some investors, and therefore lenders, immediately dropped their rates on conforming jumbos. From what I hear, the new jumbo-conforming rates are about three-eighths to half a point higher than conforming rates.
The spread previously was as much as half a percentage point higher, a difference of $300 on a monthly payment, for every $100,000 borrowed (at 6%).
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Source: Mortgage Matters – By Holden Lewis, Bankrate.com
