Jumbo Loans Getting Easier to Find

For nearly a year, it has been almost impossible for buyers of homes selling for more than $417,00 in most parts of the country and up to $729,750 in pricier areas to find jumbo mortgages to pay for them.

Now that appears to be changing. Bank of America recently began offering a 30-year fixed rate jumbo at less than 6 percent. "We decided it was time to really go after that market," says Vijay Lala, a product management executive for the bank.

Other banks, including Wells Fargo, J.P. Morgan Chase, GMAC, ING Direct and Citibank are following suit, said Guy Cecala, publisher of Inside Mortgage Finance.

Borrowers for jumbos should be prepared for a complex process and should shop aggressively for the best rate, Cecala says.

Source: The Wall Street Journal, Amy Hoak (04/04/2009)