Since the credit crunch that began a couple of years ago, jumbo loans have been harder to find. Many of the lenders who used to specialize in jumbo loan financing are no longer around – and many of the larger lenders have tightened their guidelines – or just stopped lending money for jumbo loans all together.
But within the last few months, it seems that there have been a handful of lenders who are now offering jumbo loan financing – and just in time… interest rates on jumbo loans has dropped to levels not seen since 2003.
According to the WSJ:
Just a year ago, the average rate on a 30-year jumbo mortgage—a loan of more than $729,750 not backed by government-sponsored agencies Fannie Mae or Freddie Mac—was 6.86%, according to Greg McBride, a senior financial analyst at Bankrate.com. Now it is 5.48%—a rate that rivals those available during the height of the credit bonanza.
“In just the past couple of months, jumbo loans have really started to be competitively priced,” says Keith Gumbinger of HSH Associates, a publisher of consumer-loan information.
The recent low rates on jumbo loans has caused an uptick in refinancing activity – with some jumbo lenders reporting that jumbo refinancing up as much as 50% vs. what it was last year.
Refinancing a Jumbo Loan: Big Savings
Due to the large loan amounts of a jumbo loan, when you lower the interest rate by refinancing your jumbo loan, you can save a great deal of money. Dropping your interest rate just a single percentage point can add up to over a thousand dollars – on a fairly “regular” jumbo loan product.
A simple example pointed out by the WSJ was where a homeowner with a 30-year fixed-rate $800,000 mortgage at 6.86% pays $5,247 a month. If he were to refinance at 5%, his monthly payments would be reduced by $952.
Jumbo Lenders in Arizona: We Are Here
Working with the right loan officer who knows what lenders are offering what terms on jumbo loan financing here in Arizona is key — there are a handful of different lenders offering jumbo financing and each one has different guidelines.
Contact us today to see if it is in your best financial interest to refinance your jumbo home loan here in Arizona — or anywhere else!