jumbo refinance

Jumbo loan financing has been somewhat difficult to come by since the start of the credit crunch a few years ago.

But with interest rates at their lowest point in decades, interest rates on  jumbo loans have been somewhat slower to come down to the same decade-lows that conventional rates have seen.  The reason is that many of the lenders who specialized in  jumbo loan mortgages have went bankrupt and quite a few of the larger lenders have tightened guidelines (or eliminated all together) their jumbo loan product offerings.

But it appears that jumbo mortgage rates are now at the point where it makes sense for many people who have a jumbo loan to consider refinancing to take advantage of low rates — jumbo rates that haven’t been this low since 2003.

Courtesy WSJ

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.

Arizona Jumbo Mortgage Refinance: Save Big

Anytime you have a large loan amount, saving even one percent on your interest rate will translate into hundreds of dollars in savings each month on your overall mortgage payment.  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.

Can you refinance your jumbo mortgage and still pay off other debts? Yes.  Some people choose to refinance auto loan that they may have taken out years ago because interest rates are low and attractive.

Academy Mortgage: Jumbo Mortgage Lender

Academy Mortgage is one of the top lenders in Arizona and has become the choice of many Realtors who refer their clients to us.  Even many home builders will refer Academy the deals that their in-house mortgage company cannot get done.

We have several different loan officers who are experts at jumbo loan products and can easily help you calculate whether or not it makes sense to refinance your jumbo loan when you weigh the costs and the benefits of refinancing.  Our loan officers work with all different types of home financing and have the knowledge and experience to help you get the right jumbo loan for your situation.

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!

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