Question:

What are the jumbo mortgage loan interest rates, compared to other mortgage interest rates?

Answer:

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Currently, a 30-year fixed rate jumbo mortgage and the standard 30-year fixed rate conforming mortgage have 1% rate difference on average, nationwide, as of July 2008. The spread can be smaller for your area, though. The 30-year jumbo FRM rate goes up to 7.30% on average, and the standard 30-year FRM rate is around 6.30%.

A hybrid jumbo adjustable rate mortgage (say, 5/1 jumbo ARM) can be found at less than 6.20%. A 15-year fixed rate jumbo can be found at 6.50%. However, those rates will vary greatly by area. You will do better locating rates for your specific area. Also, a mortgage broker might be able to shop the best jumbo rates, especially if they are working on exclusive terms with the homebuyer.

Interest rates on jumbos depend on various factors:

In general, the higher the jumbo loan LTV, the higher the rate. Your rate will be determined by your area, your credit, and of course, the down payment. Lenders, doing jumbo loans may demand two house valuations and require larger cash amount upfront.

However, currently jumbo rates are much higher than conventional mortgage interest rates, so it might make sense not to rush in a jumbo mortgage loan.

Mortgage rates hit their lowest since 1955. Ask the home loan experts we recommend Quicken Loans how to take advantage of them.
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