Jumbo mortgage rates may be on the decline, which is a good thing for homeowners in luxury home areas. These mortgages are referred to as jumbo because the loan amount is higher than the limit for loans of government-backed Freddie Mac and Fannie Mae.
For a while, jumbo mortgage rates were becoming costlier and more difficult to acquire due to the lack of available credit from lenders. However, Bank of America, which took over Countrywide Mortgage, has begun promoting its jumbo mortgage loan program with lower rates than other large banks. Many experts believe the other banks will soon follow this example.
Nowadays, banks no longer have institutional lenders for these loans, so they must keep the loans themselves. With so many people being more conservative these days, money is flowing into the banks, and they are beginning to have more funds available to borrowers.
If you’re looking for a jumbo loan, don’t expect an easy application, though. There are many lenders out there, and these loans will differ from lender to lender. Make sure you do plenty of research about your loans and what you qualify for.
Generally speaking, your best option is a conventional, or conforming, loan. These loans usually require a 720 credit score, full documentation, and at least 20% down. If you are looking into a jumbo mortgage and need some help, contact CREFCO. We’re always glad to help you with your loan situations.
http://www.crefco.com(866) 854-4242
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