Compare Jumbo Mortgage Rates and Lenders
Review current jumbo mortgage rates for April 30, 2017 and get personalized mortgage quotes from top lenders
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Mortgage Rate ReportSunday, April 30, 2017
After holding steady for the past two weeks, mortgage rates inched higher on the week although rates remain highly attractive for borrowers. Despite the Fed's decision to raise interest rates in March and its more hawkish forecast for 2017, mortgage rates had actually dropped significantly since the Fed's announcement and hit their low point for the year last week before moving slightly higher.
Mortgage rates jumped .250% to .375% in advance of the Federal Reserve's meeting as most lenders factored the rate hike into their mortgage rate pricing before the Fed's official announcement. In the weeks following the Fed's decision, the mortgage market settled down with mortgage rates falling .375% to .500% across all mortgage programs. Enhanced clarity into the Fed's decision-making process and a rebound in the bond market amidst global geopolitical uncertainty helped push mortgage rates lower and stabilized the market after after weeks of turbulence.
Mortgage rates climbed moderately on the week with the interest rate for a 30 year fixed rate mortgage up .125% to 3.875% while the interest rate for a 15 year mortgage moved to 3.000%. The interest rate on a 5/1 adjustable rate mortgage (ARM) also increased .125% to 2.875%. VA and FHA mortgage rates also moved higher but continue to be highly appealing for home buyers seeking low down payment options with FHA and VA mortgage rates both sitting at an attractive 3.375%. Non-owner occupied mortgage rates were not exempt from the market's gravity and rose .125% to 4.125%. Jumbo mortgage rates bucked the trend for the week and remained at 3.875%, consistent with the interest rate for a conforming 30 year fixed rate loan.
After touching their low for the year, mortgage rates moved higher but remain relatively stable this week despite signs of growing economic momentum that appear to be influencing the Federal Reserve's decision making. The positive domestic economic news has recently been offset by increasing global turmoil which pushed bond prices higher while moving mortgage rates lower. Positive signs from the housing market over the past week, however, may have provided the catalyst for the increase in rates.
Although the past several weeks prove that interest rates are impossible to predict, the Fed’s decision to raise the federal funds rate and its more aggressive forecast signal that mortgage rates are likely to rise over the course of 2017, potentially at an increased pace. Prospective borrowers looking to buy a home or refinance may be able to lock in a lower interest rate by acting sooner rather than later, before mortgage rates go up again.
Because interest rates are unpredictable we continue to actively monitor the mortgage marketplace for changes. Borrowers should check the FREEandCLEAR mortgage rate tables regularly to review customized, updated mortgage rates for lenders in their area. Our rate tables are free to use and require no personal information.
What You Should Know About Jumbo Mortgages
The Interest Rate May Be Higher.
Although not always the case, the interest rate for a jumbo mortgage is usually .250% to .625% higher than the interest rate for a conforming loan. Interest rates for jumbo mortgages vary based on loan amount, loan-to-value (LTV) ratio and other factors.
Lenders have more discretion in determining the interest rate and closing costs for jumbo mortgages so borrowers see more variation in interest rates for jumbo loans. Because rates and fees for jumbo mortgages can vary significantly, borrowers should shop lenders to find the mortgage with the most attractive terms. Additionally, because jumbo loans have larger loan amounts, even a small difference in interest rate can save you thousands of dollars in interest expense. FREEandCLEAR recommends that you compare three-to-four proposals before selecting a lender, regardless of mortgage size, but shopping your mortgage business is especially important for jumbo mortgages.
Borrower Qualification Guidelines Can Vary.
Lenders also have more flexibility in setting borrower qualification guidelines for jumbo mortgages. For example, different lenders may have different credit score, debt-to-income ratio and down payment requirements. In addition to shopping for the jumbo mortgage with the lowest rates and fees be sure to understand the lender’s borrower qualification guidelines and underwriting policies.
There are Different Types of Jumbo Loans.
Technically, any mortgage amount above the conforming loan limit set by the government ($424,100 for a single unit residence in the contiguous U.S. or $636,150 for a single unit residence in Alaska or Hawaii) is considered a jumbo mortgage but the government sets higher loan limits in higher cost areas. For example, the loan limit for a single unit residence in a high cost area in the contiguous U.S. can be up to $636,150 and up to $954,225 in Alaska or Hawaii. Loan amounts that fall in between $424,100 (or $636,150 in Alaska or Hawaii) and the conforming loan limits for higher cost areas are called conforming jumbo, super conforming or agency jumbo mortgages and may have slightly higher interest rates than conforming loans. Loan amounts above the conforming loan limit for a county are called non-conforming jumbo mortgages or jumbo mortgages for short. The important point to notes is the the interest rate and borrower qualification guidelines are typically different for jumbo mortgages.
Why Borrowers Compare Mortgage Rates on FREEandCLEAR
Comparing mortgages can save you thousands. Use our rate tables to find the mortgage with the lowest rates and fees
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More FREEandCLEAR Mortgage Resources
We provide a comprehensive overview of jumbo mortgages including borrower eligibility and loan-to-value (LTV) ratio requirement
Use our Conforming Mortgage Limit Calculator to determine the jumbo loan limit for your county. Mortgage amounts above the conforming loan limit are non-conforming jumbo loans
Jumbo mortgages can be more complicated than other mortgages so the FREEandCLEAR Mortgage Expert is standing by to answer your questions. So fire away and receive a helpful response within 24 hours
Use our Mortgage Selector to determine the type of mortgage that is right for you as well as how much mortgage and home you can afford