Archive for June, 2008
Good Time to Refinance? Not For Jumbo Loans!
The feds cutting interest rates can mean only one thing: mortgage lenders are jumping at the opportunity to persuade you to refinance your loan!
There’s just one catch: if you happen to be a responsible and conscientious borrower who locked in a jumbo loan at a 30-year fixed rate mortgage, your rates are probably better than what is being offered right now on the market.
At least, that’s what I’ve found: our jumbo loan 30 year fixed rate is 6.0% and as of today, most of the interest rates for jumbo loans hover in the low 6% but generally above 6.0%. I’ve seen some as high as over 7%! It is the non-jumbo 30 year fixed rate mortgages that have the attractive high 5% rates.
Unless you’ve lived in California for decades or traded “up” a house using the equity of your first house during the housing boom, you’re likely to be paying a jumbo mortgage, which is a loan exceeding $417,000.
