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Jumbo Loan Rates and LendersJumbo loans are mortgage loans that are not eligible to be sold to Fannie Mae or Freddie Mac. Jumbo loans are mortgage loans that exceed the conventional loan limit size, which was set at $417,000 for single family homes in the contiguous 48 states. The marketplace for jumbo loans changed dramatically over the past twelve months as the secondary marketplace for jumbo loans all but disappeared during the credit crunch. Jumbo loans have historically been packaged and sold as mortgage backed loan securities to investors on wall street. These investors have almost all stopped purchasing mortgage backed loan securities in this manner as home values in the U.S. have declined so agressively over the last 24 months. Consumers who are shopping for a jumbo mortgage loan today will need to begin their search for lenders much early and be prepared to pay a much higher premium with rates and fees than they may be eligible for with a conventional mortgage loan. Homeonwers who need a jumbo loan should contact banks that portfolio their mortgage loans (hold for investment) or local credit unions. In today’s uncertain market, most lenders have stopped issuing jumbo loans unless a borrower is able to fully document their income, assets and credit over a two year period. The underwriting process for a jumbo loan on a purchase or refinance transaction may also require the borrower or homeowner to pay for two seperate home appraisals. |
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Rates, News & Advice Articles
March 10, 2010
The stock market has been trading a bit sideways following last weeks surge after the non farm payroll report. The stock market has struggled to rally the last two days, but it appears more likely investors have gained a new confidence in the health of the economy and the likelyhood that the economy...
March 3, 2010
March has started where February left off for the mortgage industry. Long term interest rates remain near five percent for thirty year loan terms, hovering near the lowest levels the market has witnessed in the past two years. Yields on the closely followed ten year bond have hovered around 3.6% for...
February 22, 2010
Home loan rates continue moving lower in 2010 as the mortgage industry has benefitted from a pullback in the market. Bond yields over the past week have been relatively unchanged as the yield on the ten year Treasury bond is stil hovering in the upper 3.7% range. The lack of movement in the bond yields...
February 17, 2010
The stock market has struggled with putting back to back gains together for the better part of the New Year as investors have witnessed a roller coaster ride between sharp rallies and steep declines. The recent two day rally this week has helped bring the Dow back above the 10,000 point level, but has...
