Amy Hoak’s article, The Return of the Jumbo Loans, discusses the recent growth in the availability of lower interest rate jumbo loans. Here are a couple of highlights from the article:
- Bank of America, GMAC and ING are currently offering competitive, lower interest rate jumbo loans, even on a 30-year fixed-rate mortgage
- rates on 30-year fixed-rate jumbo mortgages averaged 6.5% for the last full week in March
It is prudent to do your homework when considering a jumbo loan. First, take a look at the potential dollar amount for your purchase or refinance. Compare it to the current maximum for conforming loans in your county. The jumbo loan taken out a few years ago may be a conforming loan in your area today.
Once you determine that you are indeed in the market for a jumbo loan, you will need to compare each bank’s requirements. Be forewarned, the loan prerequisites are more stringent today and the loan process, regardless of the type, takes longer, and is more complicated, now. The details regarding jumbo loans varies greatly from bank to bank, according to Hoak’s article. Make sure you meet all the requirements for your preferred financial institution before starting the loan process.
When compiling information to decide which bank to use, if you have a relationship with an agent, ask for industry expert recommendations so you can discuss your lending needs with a professional. Talk with friends and family, to see if they know anyone who’s in the process of obtaining a jumbo loan. Don’t forget to look at what local credit unions or smaller, regional banks may be offering in the jumbo loan market.
The Windermere office on Mercer Island can help you with your loan research. Please give us a call at 206-232-0446; we can provide you with contacts and resources for local jumbo loan providers.