Jumbo mortgage rates and future rates (loan, interest rate, 2014, approval)

[Universe93B]

In the near future when getting a mortgage, I was wondering about the interest rates on jumbo vs regular. I know traditionally jumbo rates are usually higher? But I did some searching and some jumbo rates are actually the same or lower. Is this because banks are itching to issue jumbo mortgages?

For example, searching on Wells Fargo mortgage rates, the jumbo rate is actually lower for 30 year. Is there a chance that I can get a jumbo rate that is almost the same as a regular rate if I do some searching around?

[thelopez2]

Originally Posted by HouseBuilder328

Is there a chance that I can get a jumbo rate that is almost the same as a regular rate if I do some searching around?

For example, searching on Wells Fargo mortgage rates, the jumbo rate is actually lower for 30 year.

Didn't you just answer your own question?

I just went to the Wellsfargo Website, the Jumbo is higher, when I plugged in numbers for a 480k loan versus a 400k loan in Los Angeles.

I can rephrase your question, is it possible for someone to give me a higher rate loan on a non jumbo loan compared to a Jumbo? Yes.

[FalconheadWest]

This has been the case for several months now, where jumbo rates have been looking very comparable to regular rates, and people aren't as concerned about hitting that $417k limit anymore. Go for it, if it's right for you.

[SmartMoney]

Originally Posted by FalconheadWest

This has been the case for several months now, where jumbo rates have been looking very comparable to regular rates, and people aren't as concerned about hitting that $417k limit anymore. Go for it, if it's right for you.

This is what I have seen. We have 3 categories we watch, the Conforming (417K), the High Balance (625K - 729K - it's locality based), and Jumbo, anything over the High Balance.

For the past few months, the jumbo has been better than HB, and in several cases, as good or better than conforming. It's also spread to the ARMs as well. I went to price a 450K ARM the other day and the Jumbo pricing was better across the board......however, one caveat was to get this pricing, the loan amount had to be at least $417,001 (meaning conforming could not use it, but HB could).

Banks are recognizing the jumbo guidelines are about as tight as they ever have been and someone obtaining approval in this environment is a great investment. About time something changed for the better!