Two weeks ago, the average interest rate on a 30 year fixed rate jumbo dropped to 5.79% , a nearly five year low. This average is also down from 7% in late 2008.  Would you think you can get rates on jumbo mortgages that are even lower? Well you can! Rates are even lower on hybrid adjustable mortgages, which the rate is fixed for a period of time and adjustable there after. Banks are beginning to relax slighhtly on their requirements for jumbo loans. These lower rates are reflecting the banks increasing confidence in the housing market.

The Max loan amount alowed for Freddie Mac and Fannie Mae "conforming loans" are set by congress and for a single family home is 729,750 in high cost areas. At "The Mortgage Concierge Group" we also work with investors that are portfolio lenders, or lenders that service there mortgages and do not sell to the secondary market. These portfolio lenders will make mortgages that are higher than 1 million dollars.

In 2005 to 2006 the difference in interest rates betweend conforming and nonconforming or jumbo loans were only a quarter percentage higher on the jumbo mortgages. In early 2009 the spread widened to 1.7 percent difference. However, this year the rate spread has narrowed to less than a percentage point and can shrink even more after a new Federal Reserve program.

Not only are rates and requirements lowering but the are said to possibly continue to do so. Now is the time to call us and figure out your options in regards to refinancing or consolidated debt. It is great to see some relation in the market, especially in the jumbo sector.