Take advantage of jumbo home loans at just 3.875%
GSF Mortgage is offering borrowers in 24 states from Massachusetts to California one of September's best deals on jumbo loans.
It's charging just 3.875%, with no points and no fees for a 30-year, fixed-rate mortgage that can be used to buy or refinance a property.
That's close to half of a percentage point below the national average for that type of loan — 4.35%, according to our latest survey of major lenders.
Monthly principal and interest on this loan would be $470 for every $100,000 borrowed. You can use our mortgage calculator to determine the monthly payments for the amount you want to borrow with this or any home loan.
It also has 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 the loan.
GSF Mortgage is headquartered in Brookfield, Wisconsin, and enjoys an A+ rating from the Better Business Bureau.
In order to qualify this loan from GSF, you'll need:
- A credit score of 740 or higher.
- A down payment of 35% or more if you're buying a home.
- At least 35% equity in your home if you're refinancing.
- For this to be your primary residence.
- An escrow account.
- To take out a loan from $475,000 up to $1.5 million.
It writes loans in Arizona, California, Colorado, Delaware, Florida, Illinois, Indiana, Iowa, Louisiana, Maryland, Massachusetts, Michigan, Minnesota, New Hampshire, New Jersey, North Carolina, Oregon, Pennsylvania, South Dakota, Tennessee, Texas, Virginia, Washington and Wisconsin.
Live somewhere else? Click here to search Bankrate's extensive database of the best mortgage rates from scores of other lenders in your area.
If you can find a jumbo loan similar to the one from GSF, you know it's a good deal.
Mortgage rates are around half of a point lower than they were at this time in September 2013 and have defied all expectations that they would get more expensive this year. In fact, they've actually gotten cheaper since the first of the year.
They were expected to rise because the Federal Reserve is gradually ending its campaign to drive long-term interest rates, including mortgage rates, to record lows.
In September 2012, the government-controlled bank started buying up $85 billion of debt per month, split between Treasury bills and bonds backed by home loans.
By flooding the mortgage market with money, it pushed the cost of home loans to record lows in an attempt to boost real estate sales and property values battered by the recession.
With the economy on the mend, the Fed began reducing those purchases this year, buying only $75 billion in January, $65 billion in February and March, $55 billion in April, $45 billion in May, $35 billion in June and July, $25 billion in August and a projected $25 billion in September.
The Fed's rate-setting committee meets today and Wednesday, and is expected to confirm that it will buy $15 billion in October and then bow out of the bond market in November — unless, of course, we're confronted with some new economic catastrophe.
So why are mortgage falling instead?
The major reason is that the demand for mortgages — and the money behind them — has truly cratered.
Millions of homeowners leapt at cheaper mortgages when interest rates were falling, and now the boom is over.
Refinancings are down about 60% this year, according to the Mortgage Bankers Association.
Home sales are flat as well. The association expects the number of mortgage originations for purchases to actually fall by 10% this year.
Lenders only issued 226,000 mortgages for one- to four-family dwellings during the first three months of the year — the fewest since the second quarter of 1997.
The market picked up in the second quarter, rebounding to 267,000 loans, but that is still less than half the number written in April, May and June of 2013.
All of this has made the Fed's withdrawal from the mortgage market more or less irrelevant. The money it's been providing simply isn’t needed to fund the relatively few new loans being written.