We have been getting significant traffic on our website and inbound calls about rates and jumbo/super-jumbo loans. As of today, there is no strong 30-year fixed pricing for jumbo and super jumbo loans. While you can find rates in the low to mid 6’s, you cannot expect to see the historic rates we are seeing on the conforming loans available for these large jumbo and super jumbo products.
The best option for financing a property over 417k and less than 1.2 million is with an ARM. Rates range from 4.75 to 6.5%, depending on the length of the ARM. A sweet spot in the low 5’s exists for well-qualified borrowers on jumbo loans. I don’t expect this to change in the near future. If you have a jumbo loan and are only slightly over the 417k limit, it is definitely worth your paying it down to under the cut-off so that you can take advantage of once in a lifetime pricing on conventional loans.
An example from today’s callers:
765 middle credit score, 2 million dollar purchase price with a 1.2 million dollar down payment. This is only a 40% LTV. The rate available at wholesale to this customer was a 5.20% on an ARM. Interest-only is available on these jumbo loans!
