Jumbo mortgage rates are generally 0.25-0.50% higher than conventional mortgage rates. Jumbo loans are a higher risk for lenders and therefore are charged higher interest rates to offset that risk, in the event of default.
The most important difference is the interest rate on the note remains the same through the term of the loan, instead of a common loan where the interest rate may adjust.
Loan Rates.
Car loans are riskier than home loans. The car looses value from day one, is in danger of collision and theft and has a limited life span. In addition, the vehicle can 'disappear' in a...
Yes, Chicago mortgage rates are lower than Los Angeles mortgage rates because everything in Los Angeles costs more than Chicago; but on the other hand minimum wage is more in LA too.
Jumbo mortgage rates are usually given to people that have bad credit and therefore have a higher interest rate on their mortgages. They end up paying more in terms of a monthly payment too.
What the base line interest rates are when you are taking out your mortgage will determine which is the best value. Remember what is the lowest rate now may not be the lowest in a couple of years.