Sunday, September 9, 2007

The return of the Jumbo loan

Finally this week, we are seeing the return to relative normalcy of the Jumbo Loan. Several of our investors are offering us competitive rates on Jumbo loans (those over $417K) again. We are seeing a reasonable spread between the conforming (<417K) and Jumbos again, with Super Jumbo & Ultra Jumbo once again being offered. Many of the Jumbo programs have been either suspended or priced through the roof by lenders in the wake of the August 2007 secondary market mortgage meltdown.

We have always felt that Jumbo Loans would return to normalcy, and return with reasonable rates & qualification guidelines. There is simply too much demand for these, and there are many low-risk, premium borrowers who banks should be happy to lend money to.

If you have a Jumbo Adjustable Rate Mortgage, we suggest you call us to review your position, and make sure you are in the most appropriate loan to match your taste for risk, affordability (avoid increasing ARM adjustments), and reducing Interest expense. We can help you sort out how, when & how much your ARM rate & payment will adjust. We can help you figure out the margin, index, recast point, payment options, etc. Call Brian Skaar at 866-900-2342 x106 or visit us online at