Sacramento Mortgage Rate Update

So what are mortgage rates doing?

That’s an interesting question. The conforming 30 year fixed rate has actually been falling. That is the bright star in a dark sky. But, it helps pull FHA, VA, CalHFA and any agency 100% programs down with it.

Freddie Mac last week reported the average 30 year fixed rates in the West at around 6.5% at half a point. And although things are bouncing around a bit, conforming rates continue their gradual decline. That makes it a great time for borrowers who can cobble together a down payment and document income.

Jumbo rates–and pretty much everything else–are a different story. The customary 25 basis point spread between the conforming (under $417k) and jumbo rates has widened in recent weeks to at least 100 basis points, putting the best jumbo 30 yr rates in the low 7% range.

A good alternative is to structure a 1st/2nd combo, keeping the 1st at $417k and piggybacking a 2nd behind it. If the combined loans still meet the lender’s requirements and you can find the required 2nd, you’ll have a lower payment that way.

A good mortgage broker can offer you options no bank can match. We can even obtain 1st and 2nd loans from different sources when that saves you money.

Nobody can do what a mortgage broker can.