And they don’t all have crazy rates either.
I know a lot of you have heard some pretty nutty stuff about the rates your buyers are being quoted for Jumbo loans. I am writing today to tell you all that there is nothing to be concerned about. Jumbo loans are fine, AND they have great rates that are still at historic lows (did that sound like a Lending Tree ad to anyone other than me?). Long term ARM’s (think 5, 7, and 10 year ARM’s, - not 2 or 3 year) have rates in the mid to high 5’s, and fixed rates can be gotten around 6%. Of course the typical “new rules” apply; you will likely have to show income, make a down payment, and you will need decent credit.
Here are a couple of specific Jumbo products that we are seeing successfully close:
- 5% down 30 year fixed with no PMI (rates are around 7%) – 700+ fico required
- 20% down 7 Year Arm (rates in the mid to high 5’s) – 650+ fico required
- 25% down 7 Year Interest Only Vacation Homes priced up to $2,000,000 (rates around 6%) – 680 fico+
- 15% down up to $585k purchase price with 580 fico (rates…well, not so good J)
- 20% down No points, No fees inside of new Fannie Conforming limits ($729k max) fixed rates in the high 5’s.
- 40% down 4 million dollar home, 5 year ARM (rates in the low 5’s) – 650 fico
Next time you hear a buyer complaining that they are taking a high rate because of their loan size, or worse…they are passing on the house, make sure they are speaking with someone that knows the current jumbo loan market. If you have a question about a specific borrower, you can always call me at 800.937.3307 x101.
--Keith
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