Will Jumbo Rates go down further?
So does anyone think that jumbo rates will go down lower also. Conforming rates are really really low. But jumbos are also dropping but how far can they go? I think they are currently around 6.375%. What is the likelyhood a jumbo rate would go below 6%? I’m trying to decide whether to go ahead…
So does anyone think that jumbo rates will go down lower also. Conforming rates are really really low. But jumbos are also dropping but how far can they go? I think they are currently around 6.375%. What is the likelyhood a jumbo rate would go below 6%?
I’m trying to decide whether to go ahead an lock a jumbo at 6.375% for $440K. My gut tells me that it won’t go much lower but who knows?
what does the forum think?
I am happy with my mortgage broker in that I am happy with the rate we got. Her name is Susan Gersh and she is on the Upper West Side. I apologize for not being more up on the details of the conforming limit but I am unsure how to answer you question about that.
Who’s your broker? Happy with them? I am really surprised about 6.00. Is that within the this year’s conforming limit for a jumbo? We are still above that amount. Grrrrrr.
I revise my view from above. Somehow my mortgage broker managed to unlock us from 6.375 and relock us at 6.00 on our jumbo loan so I guess rates could still go down farther. Locking at 6.00 certainly is pretty good though so I don’t know how much longer I would ride it out personally.
Here is some clarification on conforming, jumbo, and conforming agency jumbo. Anything 417k or under is conforming. Anything above 417k is jumbo. However, temporarily there is a program until the end of this year for loans between 417,001 to 729,750 to qualify under the conforming agency jumbo loan program. The rates are slightly higher than the conforming but lower than your standard jumbo.
Julier, I work for the bank. In this market, I think it is advantageous to go directly with the bank because of all the uncertainty in the market. At the end of the day mortgage brokers are middlemen. The banks they deal with can change a loan on them on a flip of a switch. I have been on the broker side and sometimes rates can be lower. But if you work with a top producing loan officer from a bank, they should be able to get you a pretty competitive rate as well. As far as the CEMA to avoid repaying mortgage tax, you can do that with almost any lender, doesnt have to be Chase.
You have a 5.5% but only good for 3 years. If you can lock into something like 5.75% for 30 years then I would say go for it. Anyone that tells you where mortgage rates are going doesnt know anything. No one knows. Im sure you want he best rate possible but now is not the time to get greedy. What will you do if rates go back up and you never find an opportunity to refinance at a low rate? Sure you will have 5.5% for 3 years then it will go up. You will probably see lots of volatility in rates the next few weeks and 5.5% is not out of the question but when was the last time we saw the 30 year fixed that low? But if rates hit 5.5% I will be sure to post it. Just my thoughts.
sunny_hong@countrywide.com
Thanks for the input. But do folks agree that one can get a lower rate with a broker vs. going directly though your existing bank/or another bank? And would the savings on the fees generally make a bigger difference than a lower rate with a broker? I suppose all of this depends on the amount of the mortgage. But being that we have a jumbo–even with the new limit–I am just hoping to do the right thing.
Guessing what is going to happen with mortgage rates is really tough for me and I feel like any input from a mortgage broker is about convincing me to refinance so they can get paid.
If I’m not mistaken, I think a loan or note modification can only happen if the terms don’t change.
Chase is correct because if you refinance with the existing bank, they can do a note modification where they swap out just the promissory note and replace it with another note with the new rate, but they don’t touch the mortgage itself, which saves you admin and recording fees.
HOWEVER, in this climate I’m surprised that Chase or the other big boys would still be willing to do that, since I thought they were trying to dial down their exposure to loans on their books. Maybe Chase is in a better position than the others.
I am considering refinancing my jumbo as well but still have 3 years on current fixed rate of 5.5 so I am hesitant. Hoping rates go down a bit before I pull the trigger. Here’s my ?: My mortgage is with Chase and when I recently spoke with them about refinancing directly with them they said I could save a lot of $ on fees by doing it with them and not with a mortgage broker–especially in NY. Is this true? Do folks generally go with mortgage brokers for refinancing? It was my understanding, that despite logic, one could actually get lower rates using brokers. Any advice would be great.
The new conforming limit is $729K. The catch is, I am not sure that it applies to coops or condos. It definitely applies to single-family homes b/c I rec’d a rate of 6.2% on an amount above $440K back in May–bought 1 point.