Texas Jumbo Home Loan Rates-who has the lowest rates in TX?

July 26, 2008

Current Mortgage Rates Texas: Jumbo Home Loans Rates

While today’s 30 year mortgage rates are good (6.625%), and the 15 year mortgage rates are better (6.25%) the jumbo home loans are crazy high!

The current mortgage market just doesn’t like non-conforming loans or mortgages that don’t conform to Fannie Mae or Freddie Mac.

These two giants truly wag the dog…

Fannie/Freddie truly set the rules in today’s mortgage market. And right now there’s just not a market for loans over $417,000. Bank’s prefer “safer” loans under $417,000.

Eventually non-conforming loans (like Jumbo loans) will come back and have better rates, but it may be sometime.

Fannie Mae and Freddie Mac account for 70% of the total US mortgages. By the way, did you know you can buy stock in these guys? (Fannie Mae/ Freddie Mac Stock Price)

How to get a better rate on a jumbo home loan.

To get a better jumbo mortgage rates most borrowers will need to (a) put more money down or (b) meet the $417,000 limit with an 80/15/5 or 80/10/10 mortgage. For example, if you want to buy a $600, 000 home you may want to work with a mortgage broker that is allowed to ”break the loan up” into a $417,000 first and a $87,000 second lien with 5% down. Or just call me at 512-996-8194

When considering buying a home north of $417,000 you really need to talk with a mortgage broker like www.mylendingplace.com. Retail banks have fewer options than mortgage brokers; especially on second liens.

And with jumbo home loans it will all come down to the second lien rate and terms. And with regular jumbo home loan rates in the 8-9% range we’ll need low second lien rates….

Most retail banks just offer single loans with PMI. Mortgage Brokers have more options. And did you know, mortgage brokers must be licensed and continue to meet strict guidelines? At a retail bank a loan officer just needs to know how to complete a job application.

I’ve been in the business for over 5 years and have closed millions of dollars in home loans. And I don’t charge application fees. I help people all over Texas.

For example, Today’s 15 year jumbo home loan rate is 7.875%.

When we do this it helps several ways: You don’t have PMI, you can pay your own escrows and you get a better rate–not to mention you’re closing costs are lower with two loans. 80/10/10 or 80/15/5

30-Year Fixed 6.625% 6.860%
20-Year Fixed 6.625% 6.933%
15-Year Fixed 6.250% 6.631%

PHONE: 512-996-8194 (We help people all over Texas buy and refinance)

Today’s Texas Jumbo Loans – Amounts that exceed conforming loan limits $417,000

30-Year Fixed 8.500% 8.671%
15-Year Fixed 7.875% 8.135%
10-Year ARM 8.250% 7.555%
5-Year ARM 7.000% 6.242%

Good Mortgage Articles about Fannie Mae/ Freddie Mac

http://www.mtgprofessor.com/A%20-%20Secondary%20Markets/what_do_fannie_and_freddie_do.htm

http://hnn.us/articles/1849.html

http://www.bloomberg.com/apps/news?pid=20601087&sid=a2f0oLSggYPM&refer=home

http://money.cnn.com/2008/07/07/real_estate/fannie_freddie/index.htm?postversion=2008070718