How to Obtain the Lowest Jumbo Rate

You can save a lot of money by finding the lowest Jumbo Rate. A small difference in your Jumbo rate, even 1/8 % can save hundreds of dollars each month. To search for the lowest jumbo rate, it is helpful to know how they are priced. Proper structuring and preparation of your mortgage and knowing how the banks price their loans will help you find the lowest rate.

1. A larger down payment equals a lower Rate –Sure you can find a 10% down Jumbo Program because many banks offer them, but do not expect a great rate if all you you are willing to put down is 10%. The normal down payment is 20% down but the best rate goes to the borrower with 25% or more down. Consider putting more down.  
2. Learn your credit score –  Now is not the time to find out your ex-spouse is still using your credit to open accounts. It is imperative to know your score 90 days before you mortgage shop. The three credit bureaus are Trans Union, Experian, and Equifax.  Each of these companies will score your credit independently and the mortgage company will use the “mid-score” of the three. Make sure you review each one for errors because one mistake can reduce your score by 50-100 points making you not eligible for a jumbo mortgage or not qualified for their best rates costing you thousands. You can obtain copies of these reports at http://annualcreditreport.com for free once per year.Banks like Chase only offer the best rate to those borrowers with a credit score of 780, those under 780 have a higher rate. Credit scores are crucial.
3. Find a Jumbo lender and track the rates- Most loan officers will gladly quote a rate and then call you when rates have reached the target you are looking for. If the prevailing rate is 4.5% and you would consider a refinance when the rates are at 4%, the loan officer will call you on the day the rate is available and you can refinance.
4. ARM loans can work wonders for the right person – ARM loans can have a fixed period and are usually at least 1% lower than comparable 30 year fixed rate mortgages. This can save thousands per year. ARMS have a fixed rate period of 3, 5, 7 or 10 years and then they adjust monthly after the fixed period is over. ARMS have caps on how much they can increase of 2% per year and 5% lifetime cap over the start rate. If you know you aren't going to stay in the home beyond a certain time period, or better yet, if you will be able to pay off the loan early then this might be the way to go.

Check jumbo rates and stay current – Mortgage rates change with the market and can change several times per day. Make Checkrates.com the place for you to track jumbo rates.