With interest rates for almost all mortgages at their lowest points in decades – interest rates on jumbo loans have been somewhat slower to come down. Many of the banks that used to loan money for jumbo loan mortgages have went bankrupt and many of the bigger banks have pulled back significantly on their jumbo lending.
But as reported in the WSJ recently, jumbo loan rates are coming down and are currently at their lowest levels since 2003.
Courtesy WSJ
According to the WSJ:
Just a year ago, the average rate on a 30-year jumbo mortgage—a loan of more than $729,750 not backed by government-sponsored agencies Fannie Mae or Freddie Mac—was 6.86%, according to Greg McBride, a senior financial analyst at Bankrate.com. Now it is 5.48%—a rate that rivals those available during the height of the credit bonanza.
“In just the past couple of months, jumbo loans have really started to be competitively priced,” says Keith Gumbinger of HSH Associates, a publisher of consumer-loan information.
The recent low rates on jumbo loans has caused an uptick in refinancing activity – with some jumbo lenders reporting that jumbo refinancing up as much as 50% vs. what it was last year.
Arizona Jumbo Loan Refinance: Big Savings
The larger the balance of a jumbo loan, the more savings are possible by lowering the interest rate. With a million dollar jumbo loan, you can easily save tens of thousands of dollars each year by lowering your rate by only one percent.
A simple example pointed out by the WSJ was where a homeowner with a 30-year fixed-rate $800,000 mortgage at 6.86% pays $5,247 a month. If he were to refinance at 5%, his monthly payments would be reduced by $952.
AZ Jumbo Lender: Academy Mortgage
Academy Mortgage is one of the top lenders in Arizona and has become the choice of many Realtors who refer their clients to us. We work with people for many different types of mortgage financing, and have expertise with people who are searching for the right jumbo loan financing for their new home.
Contact us today to see if it is in your best financial interest to refinance your jumbo home loan here in Arizona — or anywhere else!
