Jumbo Mortgage Rates Review
Jumbo mortgage rates apply to higher priced housing in affluent neighborhoods. Jumbo mortgage rates generally run higher compared to mortgages on averagely priced residential homes by at least a quarter of a percent since it costs more for banks to pull out substantial sums of money. In addition, jumbo mortgage rates average higher due to an increased risk of defaulting on exclusively priced real estate.
Jumbo mortgage value limits are re-defined annually to compensate for rising home prices over the last decade. Government affiliated agencies like Fannie Mae and Freddie Mac determine home value caps to qualify for jumbo mortgage rates. At this point, jumbo mortgage value limit was determined to be $417,000 with exceptions reserved for traditionally expensive real estate in Hawaii and other exclusive communities.
Due to higher than conventional jumbo mortgage rates, some people choose to employ some creative strategies to stay under the jumbo rate limit to save thousands of dollars over a long period of time. Some mortgage lenders will devise a plan for you to take two mortgages out enough to purchase more expensive housing to qualify for conventional mortgage rate and potentially cheaper refinance mortgage rate in the future. Talking to a number of mortgage lenders will allow you to find one that will let you apply this strategy to buying a home of your choice.
Since buying an expensive home is a major financial decision, timing is very important and keeping up with recent mortgage rate predictions will help you pick the right moment to lock in a low mortgage rate to save you thousands of dollars in the long run.
Read our other articles to find out strategies and ways to get mortgages for people with bad credit.