2011 ends with jumbo mortgage rates at record lows

House on rate chart

Jumbo mortgage rates have had an incredible year, which they’re capping it off by hitting another new record low, according to Interest.com’s most recent survey of major lenders.

In early January 2011, the average cost for a jumbo loan -- one that exceeds $417,000 to $625,000, depending on the city -- was 5.59%.

Throughout spring and summer, jumbo rates fell fairly steadily. By Aug. 17, they’d sunk below the 5% mark to 4.89%.

Last week, the cost of a jumbo loan dropped to 4.66%, the lowest point in the 13 years we’ve been tracking jumbo rates. This week the average dropped even further to 4.64%.

The other three types of rates we track rose slightly, but remain very close to the all-time lows they reached this year.

Home loans should continue to be exceptionally affordable next year, too. The typical 30-year, fixed rate loan should continue to cost half, or even less than half, of their average cost over the past 40 years.

Our Dec. 28 survey found the average interest rate for a:

30-year, fixed-rate loan increased slightly from 4.20% last week to 4.21% this week. The record low for this type of loan is 4.19%, which was set on Dec. 14.

15-year, fixed-rate loan rose to 3.44% after holding steady at its record low of 3.42% the past two weeks.

5-year, adjustable-rate loan also increased, rising from 3.18% to 3.20% this week. Five-year ARMs, home loans on which the initial interest rate remains fixed for the first five years and then changes once a year, established its record low of 3.05% on Sept. 21.

Our database of interest rates can help you find the best deals in your area, including many that are less costly than the national averages.

You can use our home loan calculator to determine the monthly payments for the exact amount you want to borrow with this or any home loan.

It will also provide a month-by-month amortization schedule that shows how much you've reduced your debt and how much you still owe.

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