Jumbo Loans Have Higher Rates
Without the good old portfolio lenders like World Savings, remember them, Jumbo loan availability has dwindled as the risk involved dries the ink out of the underwriters approval stamps. Jumbo mortgage loans were already considered high risk previous to the market collapsing. Today, this risk is shown in the high mortgage rates. Even though banks are stacking up big money with investors playing it safe with savings accounts credit is squashed. The rise in refinance applications on conforming mortgages is just another result of lower interest rates and we can only hope that soon the government takes bold moves to lower the rates and increase the available credit on the once prosperous true jumbo loan. With most of the old jumbo loan lenders out of business except for a few it’s more important than ever for a homeowner to be tedious in their search for a jumbo mortgage.
You don’t want to take the first bank that will approve you. Though it might take some research and shopping on part of the homeowner, more than usual, field a few competitive offers and negotiate just as you would in the flowing credit market. You may be surprised with what good rate you can find despite the negative news surrounding the credit market in particular the mortgage industry.
Add comment May 28th, 2009