As a potential home buyer, you may be looking to buy your dream home. It may be a house on a large plot of land. It could be a home that’s just been built or one that offers a special significance to you. Sometimes, the value of the home is much higher than comparable properties in the area. That is why you may need to look for jumbo mortgage rates. Jumbo mortgages are those that have a high value beyond what a traditional loan might offer.
Here’s What You Need to Know
When comparing jumbo mortgage rates, you may notice that they are a bit higher than other loans. Why is that? It goes back to what these loans are. Because of their value, they exceed the limits set by Freddie Mac and Fannie Mae. That means these two organizations – which are the largest mortgage buyers in the country – will not choose them. As a result, there is more risk involved in these loans to lenders. And, with risk comes a higher interest rate.
Jumbo rates are available at competitive pricing in many cases. Many times, home buyers will find lenders are willing to offer fantastic rates on these larger loans. This is especially true if the home buyer has very good credit and a sizable down payment. Being creditworthy and having steady employment will help you to obtain these loans.
Take the time to check out and monitor jumbo mortgage rates over the long term. What you will find is that these larger loans can still be very affordable to you especially if you allow them to span a longer term length. Some lenders specialize in them. These are the lenders you will want to work with to ensure you get an affordable, competitive interest rate on the mortgages. These rates will change frequently, requiring a careful eye.
Find out what the current jumbo mortgage rates are by checking out Guaranteed Rate. Secure the best terms for your next home loan at Guaranteed Rate.