4.25% 30 Year Fixed Rate
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Program Rate APR
30-Yr fixed 4.750 % 0.7 to 1
15-Yr fixed 3.750 % 0.7 to 1
5/1 ARM 3.125 % 0.7 to 1
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Take Advantage of Historically Low Rates

Over the past few years, interest rates on new and refinanced mortgages have fallen to historically low levels. For someone looking to purchase a new home or refinance an existing mortgage, taking advantage of these low rates could help them save hundreds of dollars per month in excess interest charges.

While mortgage rates today may be quite low, those people looking to take out a jumbo mortgage can normally expect to be charged a much higher interest rate than those that fall under the jumbo mortgage guideline. This is because jumbo mortgages are not considered conventional mortgages and do not have the same backing by the government. Without this backing, banks are taking on additional risk by giving them out and they are forced charger higher rates in order to compensate themselves for the additional risk.

Since jumbo loan rates tend to be higher than the other mortgage rates today, most people should look for ways to ensure that they can get the lowest rate possible on their jumbo mortgage. Luckily, there are several things that most people can do to ensure that they get the lowest rate possible on their jumbo mortgage.

One way to get the lowest jumbo loan rates offered to you would be to ensure that you have plenty of equity in your home. A few years ago, most banks were willing to give mortgages to people even if they put forth less than a 5% down payment. Since many of the mortgages given out over the past seven years are now underwater, banks once again place a significant amount of importance ensuring that their borrowers have plenty of equity in their homes. Those looking to take out a jumbo mortgage will likely need between 20% and 25% equity in their homes in order to qualify for the lowest rates possible.

Beyond wanting their borrowers to have a lot of equity in their homes, most banks also want to ensure that their borrowers are low credit risks. During the sub-prime lending era, most banks were willing to offer loans to customers that did not have good credit scores. Since many of those people eventually defaulted on their loan payments, banks now place far more value in a borrower’s credit score. To qualify for the lowest rates on a mortgage, a borrower looking for a jumbo loan may need a score of 750 or better.