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April 10, 2008
Jumbo Mortgage Rates...
I've been poking around and am astounded at the rates being offered.
Even with conforming mortgages hovering around 6%, I'm seeing jumbo rates above 8%.
Anyone else experiencing the same or am I dealing with the wrong agent?
Comments
I should add...this is for a 2 or 3 family building.
Posted by: manofelt at April 10, 2008 11:06 AM
Not necessarily... There are some small S&L banks out there offering jumbo rates in the 6's right now. I'd speak to a good mortgage broker.
Posted by: guest at April 10, 2008 11:28 AM
Which S&Ls?
Posted by: guest at April 10, 2008 11:42 AM
You should be able to get a good feel for current rates using www.bankrate.com Another alternative is to use www.lowermybills.com - you input your requirements and mortgage lenders contact you.
Jumbo's up around 8% seems high given the country average is a little over 7%. Naturaly your credit rating will need to be excellent as well as a healthy 20% downpayment to obtain the best rates.
Posted by: guest at April 10, 2008 12:41 PM
For a jumbo mortgage on a 3 family, with a 20% down payment and credit score above 700 (plus a good debt to income ratio) we were quoted in the high 6's and low 7's. Definitely not 8.
Posted by: mkop at April 10, 2008 2:09 PM
mkpo,
how long ago was that? was that for a single mortgae or a combination conforming/non-conforming (essentially a home-equity loan on the balance.)
i have 800+ credit and was quoted 8.25% from a major bank that i have an excellent relationship with.
my banker told me that in the last month the market for jumbos has dried up.
Posted by: manofelt at April 10, 2008 2:18 PM
Major Banks like Citi, JP, Wells,BOA, are incredibly overpriced these days. Probably part of a nation-wide strategy to avoid riskier Jumbo loans for now.
Try Commerce Bank, Wamu, or other regional/local banks. If you are solidly low risk and have good assets they will have no problem beating the big boys.
In fact I got my Jumbo from Commerce last month for 6.9% and they ended up selling it to Wells Fargo who had quoted me 8.25% for the same loan. Funny how these things work.
Posted by: guest at April 10, 2008 3:19 PM
A lot of bankers do not realize that on a multi-family home the benchmark for JUMBOs is higher, for example a $650K loan on an $850K house is not a JUMBO and a rate of 6% is possible with good credit, job etc.
Posted by: bmfesq at April 10, 2008 3:30 PM
The quote was this Monday and was for a single mortgage (not a combo) with no points (or so we were told). I generally found that major banks don't always give competative rates (have a friend working at a major bank). We are working with Apple Mortgage.
Posted by: mkop at April 10, 2008 3:51 PM
Apple mortgage? i called them last week about a jumbo on a 2 family and they told me they didn't do 2 family loans. a jumbo on a 1 family was in that 6.5-7% range.
Posted by: guest at April 10, 2008 4:26 PM
Apple mortgage? i called them last week about a jumbo on a 2 family and they told me they didn't do 2 family loans. a jumbo on a 1 family was in that 6.5-7% range.
Posted by: guest at April 10, 2008 4:27 PM
4:26 and 4:27, are you a mortgage broker for another company? Apple Mortgage definitely does jumbos on multi-families. We had several discussions with them about rates on a single family versus two and three-family.
Posted by: mkop at April 10, 2008 4:59 PM
4:27 here -
umm, no, i'm not a broker. if i was i would have recommended my services by now.
As for apple mortgage - i'm talking about www.theapplebank.com. yes, i spoke with a woman on the phone who either told me they didn't jumbos on multifamily or if they did it was well over the 6.5% jumbo rate.
Posted by: guest at April 10, 2008 5:08 PM
Apple Mortgage is not theapplebank
Apple Mortgage is located on in midtown, on 44th and their website is applemortgagecorp
Posted by: mkop at April 10, 2008 5:55 PM
3.30pm is right.
3-Family OLD CONFORMING limit (NOT new higher one that is called jumbo-conforming) is $645,300.
BTW, the new jumbo-conforming limit for a 3-family is $1.129 million!
Posted by: guest at April 10, 2008 5:56 PM
5:56 and 3:30. Can you offer sources of info for this? I don't know if this is related, but I was told that the new higher Fannie/Freddie limits didn't apply to multi family buildings.
Posted by: lincolnlimestone at April 11, 2008 10:32 AM
Oh yes, to add to my comment at 10:35, particularly bad for New York, limits are only up on 1 family HOUSES. Don't know about Condos, but Co-ops are not eligible either.
An attack on communal living arrangements? Who knows...
Posted by: guest at April 11, 2008 10:38 AM
Oops, comment at 10:35 did not go up.
Yes, 10:32, you are correct. New Fannie/Freddie limits only apply to single family dwellings (homes).
What I also said was that smaller savings and loans will still offer rates in mid sixes (at least, our mortgage broker found one for us) since they actually hold onto their loans and don't care so much whether or not Fannie and Freddie will buy them.
Big banks (chase, wells Fargo) are NOT the way to go right now, their rates are very high.
Posted by: guest at April 11, 2008 10:42 AM
Oops, comment at 10:35 did not go up.
Yes, 10:32, you are correct. New Fannie/Freddie limits only apply to single family dwellings (homes).
What I also said was that smaller savings and loans will still offer rates in mid sixes (at least, our mortgage broker found one for us) since they actually hold onto their loans and don't care so much whether or not Fannie and Freddie will buy them.
Big banks (chase, wells Fargo) are NOT the way to go right now, their rates are very high.
Posted by: guest at April 11, 2008 10:43 AM
Guest 10:43 you are wrong, small thrifts sell loans to the gses as much or more than the money center banks, including the fhlbs.
Posted by: guest at April 11, 2008 12:10 PM
This is 5:56 from yesterday.
10:43 is WRONG about the new limits "only apply[ing] to single family dwellings (homes)."
The CURRENT conforming limits are here:
http://www.fanniemae.com/aboutfm/loanlimits.jhtml
Like I said:
"3-Family OLD CONFORMING limit (NOT new higher one that is called jumbo-conforming) is $645,300."
The NEW jumbo-conformign loan limits have been raised for ALL building types (1, 2, 3 family) to the numbers I stated.
http://www.ofheo.gov/newsroom.aspx?ID=418&q1=0&q2=0
So much misinformation on this blog by clueless people! How about 5 minutes of Googling before you say someone is wrong?! Geez.
Posted by: guest at April 11, 2008 12:22 PM
12:22. you're the man. I've emailed my broker already. Though 2-4 families seem like a niche product, we'll see if he can get it done.
I'm looking to refi my 2 family house (current mortgage is >$533,000 at 6.75%). We'll see.
Posted by: lincolnlimestone at April 11, 2008 1:06 PM
12.22 here ... thanks dude.
I'm in the same boat as you but with a 3-family.
I've been quoted 6.00% to 6.75% but I'm holding out.
I think 'old conforming' rates are headed down at least another 25 to 50bps and unlike the new conforming-jumbos (which sunset 12/31/08) the old conforming levels didn't change and won't change.
The Fed will lower rates at the next meeting and eventually that will lower conforming rates (once investors stop freaking out start buying agency paper again).
Good luck.
Posted by: guest at April 11, 2008 1:52 PM
12:22 is right, but the mortgage rates for amounts falling between OLD conforming limits and NEW conforming limits are a hybrid between the low standard rates and the higher Jumbo rates. You will not find a sub-6% for mortgages of these sizes.
Posted by: lincolnlimestone at April 11, 2008 2:57 PM
We've been looking at jumbo mortgages for a 2 family house. We found that two loans (1 conforming + HEL or HELOC) were universally cheaper than one jumbo loan. There are great tax savings also when you split the loan into two. Call the banks directly to get a better deal than you can get from a mortgage broker. We went with Commerce because they offered us a fixed rate home equity loan at a very good rate. The other banks wanted us to get a HELOC that floated with prime, but we preferred the certainty of a 30 year fixed.
Posted by: guest at April 12, 2008 1:07 AM
I doubt the jumbos are coming down any time soon no matter what the fed does in a downward direction. Why? because if the fed is easing further it is because the balance sheets of the banks are decaying even faster, they need to pull back their leverage urgently. Giving someone $1m at 6% over 30 years just isn't worth it, they'd rather keep the $50k or whatever it represents in capital.
if the fed starts raising rates the market for non conforming loans might start to ease a bit.
the housing market needs to bottom and prices need to start rising slightly from whatever the bottom is before the jumbos go down.
Posted by: guest at April 12, 2008 8:52 AM
We just got a 7/1 jumbo ARM on a 3 family at 5.5%, the letter came in yesterday. The mortgage amount limit is 1MM though, so we had to put down a bit more than 25%, for our purchase price. Whatever your purchase is, if a loan amount of 1MM works for you and your credit is good, you should be able to get it. Nicole McCarthey at Trachtman and Bach is our contact and has been great, offering lots of options.
Posted by: Colonel at April 15, 2008 1:15 PM
We just got a 7/1 jumbo ARM on a 3 family at 5.5%, the letter came in yesterday. The mortgage amount limit is 1MM though, so we had to put down a bit more than 25%, for our purchase price. Whatever your purchase is, if a loan amount of 1MM works for you and your credit is good, you should be able to get it. Nicole McCarthey at Trachtman and Bach is our contact and has been great, offering lots of options.
Posted by: Colonel at April 15, 2008 1:16 PM
New Fannie/Freddie limits theoretically apply to mutifamily homes, but no bank is obligated to offer loans at those rates. Sorry.
Posted by: guest at April 16, 2008 1:36 PM
Just called a guy who I saw post on here and people have written about Brian Scott Cohen from Wells 6.625 30yr fixed Jumbo it is real we have the cmmitment, seriously this guy does not play around...call him 718 780 9132 tell him robin and george said he is the best
Posted by: guest at May 1, 2008 11:45 PM
Just called a guy who I saw post on here and people have written about Brian Scott Cohen from Wells 6.625 30yr fixed Jumbo it is real we have the cmmitment, seriously this guy does not play around...call him 718 780 9132 tell him robin and george said he is the best
Posted by: guest at May 1, 2008 11:45 PM
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