Jumbo loans are those with loan amount over 625,000. The rate for jumbo loans are very good, especially the 7/1 ARM program, which is close to 3% now. Lenders alos added 10/1 ARM jumbo program which gives borrower longer period of fixed rate and further lower your risk.
Below is a snapshot of the recent jumbo loan rates:
3 year jumbo ARM – 3.25%
5 year jumbo ARM – 3.125%
7 year jumbo ARM – 3.25%
10 year jumbo ARM – 3.75%
30 year jumbo – 4.5%
For a 1 million jumbo loan, if the rate lowers by 0.25%, your monthly total mortgage payment will be reduced by $136. In addition, you will have much more allocated to principle and further reduce your payment of interest.
For a customized analysis of your case, please give me a call at 408-799-2558.
