For the first time in over 20 years, rates on jumbo mortgages — loans of more than $417,000, or $625,500 in pricier areas — are at or below rates on conventional mortgages. Jumbo rates usually run one-quarter to one-half of a percentage point higher, but lenders eager for wealthier customers are making deals.
Currently, rates for a 30-year fixed jumbo are averaging 4.25%, compared to 4.35% for a conventional 30-year fixed-rate mortgage. For ultra low rates, check out adjustable-rate jumbos: five-year adjustable for 2.375%. Get an ARM, though, only if you expect to move on during the fixed period.
If you have been thinking of buying a home in Scottsdale or Phoenix, take advantage of the still very low mortgage rate before they go up.