Have you noticed that 30-yr Jumbo mortgage rates ( greater than $417K ) lately are similar and sometimes lower than Conforming mortgage rates? Borrowers have almost always been rate-sensitive about taking on a mortgage greater than $417K because of pricing discrepancies. If the borrower has a 20% down payment ($417K represents 80% of $521,250), it makes sense to also consider the jumbo mortgage market, rather than try to tailor the home purchase to fit into a conforming loan amount. Regardless of loan size, if the buyer has less than a 20% down payment, keep in mind that he/she/they will either have to build mortgage insurance into the rate, or pay mortgage insurance itself. Also remember that we can offer an 85% JUMBO rate on a primary home up to a $3 million loan (pricing will be adjusted depending upon LTV (“loan-to-value”).
Ginger bowe Sullivan
USA Mortgage
505-819-0086