Mortgage Rates MN
Jumbo Financing News
Low Jumbo Rates
If you’re in the market for a luxury home, then you may be thinking about a mortgage that exceeds the Conventional loan limit set by Fannie Mae & Freddie Mac. Currently the maximum Conventional loan limit in our area is $424,100. That means that if your mortgage greater than $424,100, your loan is considered “Jumbo”.
Because Jumbo loans are not guaranteed by Fannie Mae & Freddie Mac, they are considered riskier investments by lenders and, therefore require higher underwriting standards and (traditionally) higher interest rates to help offset that risk. However, in today’s market, many investors have been aggressively pursuing Jumbo loans as the sector has improved its performance. This has squeezed the margin between Conventional 30 year fixed rates and Jumbo 30 year fixed rates to less than 25 basis points – or even inverted the relationship, making Jumbo loans less expensive than Conventional loans in certain circumstances. Long term “cheap money” has made Jumbo financing much more attractive lately and has enabled more people to increase their buying power without having to give up the security of a 30 year fixed loan.
For an example of the relationship between Conventional and Jumbo interest rates, please see the National Average Mortgage Rates as of 7/7/2017 shown below. For additional information on Jumbo financing, please contact Stig Sandell (NMLS #700167) at Bell Bank Mortgage firstname.lastname@example.org
National Average Mortgage Rates
Stig Sandell Senior Mortgage Banker
Bell Bank Mortgage
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