Jumbo loans celebrate Thanksgiving with a new record low
Jumbo mortgage rates reached yet another record low this week, according to Interest.com’s most recent survey of major lenders.
Jumbo loans -- ones for more than $417,000 to $625,000, depending on the city -- have been falling throughout 2011.
This week, the average cost for those mortgages sank to 4.74%.
That’s a significant difference from the 7.75% high they reached in October 2008 and the 5.59% they cost in early January of this year.
It's amazing to see jumbo loans costing just a half a point more than non-jumbo mortgages. They cost 1.5 percentage points more during the financial crisis in 2008.
Jumbo rates aren't the only ones declining. The average cost of three other major mortgages also reached record lows this fall and remain very close to those all-time lows today.
Our Nov. 22 survey found the average interest rate for a:
30-year, fixed-rate mortgage declined to 4.23% from 4.24% this week. The record low was 4.21% on Oct. 5, 2011.
15-year, fixed-rate mortgage remained steady this week at 3.47%, the same rate as last week. This mortgage type sank to its lowest level yet, 3.42%, in late September of this year.
5-year, adjustable-rate mortgage -- loans on which the initial interest rate remains fixed for the first five years and then changes once a year after that -- increased to 3.20% from 3.17% the week before. The record low, 3.05%, was set on Sept. 21.
Our database of mortgage 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 mortgage 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 if you want to pay off your mortgage.