Jumbo Mortgages

Jumbo Mortgage Charges Slide In Divided Market


Bankrate follows a strict editorial policy so you can be confident that your interests come first. Our award-winning editors and reporters create honest and accurate content so you can make the right financial decisions.

Key principles

We appreciate your trust. Our mission is to provide accurate and unbiased information to readers and we have editorial standards to ensure this. Our editors and reporters carefully review the editorial content to ensure that the information you read is correct. We maintain a firewall between our advertisers and our editorial team. Our editorial team does not receive any direct compensation from our advertisers.

Editorial independence

The editors of Bankrate write on behalf of YOU – the reader. Our goal is to provide you with the best advice so you can make smart personal financial decisions. We follow strict guidelines to ensure that our editorial content is not influenced by advertisers. Our editorial team does not receive direct compensation from advertisers, and our content is carefully checked for accuracy. Whether you are reading an article or a review, you can be confident that you are getting credible and reliable information.

You have money questions. Bankrate has answers. Our experts have been helping you manage your money for over four decades. We constantly strive to provide consumers with the expert advice and tools necessary to be successful throughout life’s financial journey.

Bankrate follows a strict editorial policy so you can be confident that our content is honest and accurate. Our award-winning editors and reporters create honest and accurate content so you can make the right financial decisions. The content created by our editorial team is objective, factual and is not influenced by our advertisers.

We’re transparent about how we can bring you quality content, competitive prices, and useful tools by explaining how we make money.

Bankrate.com is an independent, ad-supported publisher and comparison service. We are compensated in exchange for placing sponsored products and services or for clicking certain links posted on our website. Therefore, this compensation may affect how, where, and in what order products appear in listing categories. Other factors such as For example, the rules of our own website and the question of whether a product is offered in your region or in the credit score area of ​​your choice may also affect how and where products are displayed on this website. While we strive to offer a wide range of offers, Bankrate does not include information about every financial or credit product or service.

The average interest rate on a 30-year jumbo mortgage fell to 3.35 percent this week, although interest rates on other loans remained unchanged or rose. The decline in the jumbo means that high dollar loan holders today have an advantage when it comes to refinancing or getting a new mortgage, although interest rates remain reasonably cheap across the board.

A jumbo mortgage, also known as a non-compliant loan, exceeds the maximum value of what can be sold to Fannie Mae or Freddie Mac. In most areas of the country, that limit is $ 548,250 this year, but in more expensive areas, the threshold is $ 822,375.

The need for a jumbo mortgage is determined by the amount of funding required for your transaction, not the selling price or the total value of a home. You could get a multi-million dollar compliant loan on a property if your down payment or equity was the difference between the price and the jumbo mortgage threshold.

Mortgage rates have fluctuated over the past few weeks, and most experts believe that they will show a higher trend as the coronavirus recovery continues and life slowly returns to normal. Most industry watchers expect mortgage rates to be higher by the end of the year, albeit still low by historical standards.

In the short term, the experts on Bankrate’s weekly survey disagree on where interest rates should go in the coming week, although most believe they will fall.

“Despite underlying concerns about inflation, the Fed is inundating the markets with liquidity,” said Dick Lepre, senior loan officer at RPM Mortgage, Inc. in Alamo, California. “In fact, the Fed is buying all the government bonds for sale. This leads to lower yields. “

Learn more: