Lenders have finally begun pricing the new Jumbo Conforming Loans. So far, Fannie Mae will only be accepting delivery of the 30 year fixed on April 1, with the 5/1 ARM on May 1. Here is a comparison of the a) normal conforming 30 yr fixed, b) the new jumbo conforming 30 yr fixed, and c) the regular jumbo 30 year fixed, all from the same lender’s rate sheet today at 3pm.

a) 5.5% at 1 point / 5.875% at zero points
b) 6.5% at 1 point / 6.875% at zero points
c) 7.5% at 1 point / 8.000% at zero points

Similarly, here are the d) traditional FHA and e) new Jumbo FHA 30 yr fixed rates:

d) 5.750% at 1 point
e) 6.625% at 1 point

Share This

The 30 year fixed rate conforming loan (up to $417k) ended the week at around 6.25% at 1/2 point, according to Freddie Mac’s weekly survey.

The 3/1 and 5/1 conforming arms are once again offering a bit of a break and can be had in the low to mid 5% range with that same half point.

Jumbo 30 year fixed rates are still around 7.25%. Only the big banks with a broad retail presence are willing to stick their necks out to offer these, since investors still haven’t found their appetite.

Jumbo 3/1, 5/1, and 7/1 arms are a good bet right now with rates in the low 6% range. For those with a shorter time horizon, a jumbo 7/1 arm at 6.25% on $550k would save $366 per month, or $33,000 over five years. That’s worth looking at!

The interest-only counterparts to these loans will carry a premium on the rate anywhere from .375 to .75%

Need a quote on your specific purchase or refinance? Contact me here.

Got a question or comment, leave it below.

Share This

I’ll be away for a couple of weeks of R&R with the family at an undisclosed location….unless you can guess of course. Here are some hints…

Unbelievable…….

….Unforgettable

Share This