Has anyone applied for a "jumbo" (over $417000) mortgage recently? (Arlington: refinance, credit)

[ACWhite]

We're currently looking at houses - haven't found the right one yet. I keep hearing that banks are just not offering fixed rate mortgages over $417K, or that interest rates are much higher than for mortgages for less money, even though as we all know, that's not "jumbo" in our area, because housing prices are so high. Has anyone recently applied or known someone who has? Is there any truth to this rumor? We will likely get a smaller mortgage due to a larger down payment, but I would like to know what your experience has been.

[NOVA_almost_native]

I don't know anything about this, but I certainly hope it isn't true! I'm just about speechless at the idea that $417,000 would be considered "jumbo" around here.

[TyroneBiggums]

In general you're going to get a higher interest rate on a 'jumbo.' In this area, there is a conforming jumbo, with a loan limit of up to about $730k. I do know that you can get a 30 year fixed rate loan on a conforming jumbo or a jumbo. The conforming jumbo's rate is going to be a little lower than the jumbo.

Different lenders offer different rates and products. Pentagon Federal Credit Union offers the same rate for conventional and jumbo loans for some of their products.

[CAVA1990]

The jumbo limit here in the DC suburbs of NoVA is $729,500, not the $417,000 in some other places.

[MrGordon]

I'm in process of refinance with the rate locked 4.35% 30y fixed for amount 650k.

[ACWhite]

Originally Posted by TyroneBiggums

In general you're going to get a higher interest rate on a 'jumbo.' In this area, there is a conforming jumbo, with a loan limit of up to about $730k. I do know that you can get a 30 year fixed rate loan on a conforming jumbo or a jumbo. The conforming jumbo's rate is going to be a little lower than the jumbo.

Different lenders offer different rates and products. Pentagon Federal Credit Union offers the same rate for conventional and jumbo loans for some of their products.

I checked Penfed before posting (because I got a loan with them previously) and they do NOT offer fixed rate mortgages over $417K -- even if you live in our area with the higher limits. They offer only variable rate mortgages for jumbo amounts.

https://www.penfed.org/productsAndRa...gageCenter.asp

"Additionally, jumbo fixed rate mortgages are no longer offered."

Penfed uses the term "super jumbo" for the mortgages above the ~$700k cutoff.

And, thinking maybe they meant the over $700 range, I entered $418000 with Arlington County and other inputs in their online form, and only variable rate mortgages were returned, with the same comment about jumbo fixed mortgages' not being available.

[ACWhite]

Thanks to all -- I am aware of the stated higher limits, but this is why I was surprised about the result I just described.

When I went to a few other bank sites (even local banks such as Burke & Herbert), I saw that they also treated above $417 as "jumbo" and didn't put their rates for those mortgages on the sites, even when they did advertise rates for fixed rate loans below it. So they are clearly are viewing the $417K as a meaningful point, even in our area. Again, this is for fixed rate mortgages, but if you want a jumbo mortgage, you probably don't want a variable loan in this low rate environment.

I had the same impressions you all did until yesterday. A friend had mentioned at dinner last week that she had heard generally about surprising tightening--so I did some research and was quite surprised. So if you are relying on general info (as I was before going to these cites), you may want to do a bit of searching too.

[ACWhite]

Originally Posted by MrGordon

I'm in process of refinance with the rate locked 4.35% 30y fixed for amount 650k.

thanks - do you want to say where you got it? I understand if not. I wonder if refinances are different from new purchases as to availability?

[mshan242709]

Might you be eligible to join Navy Federal Credit Union?: Navy Federal: Membership

[gkunni]

We took a Jumbo loan at 4.5% fixed rate for 30 years . Loan amount is 470K , but had to take this finance option to get the rebates builder was offering ( Ryan and NVR )