KIRO Radio's Tom Kelly digs deep into the Puget Sound real estate market
Real Estate
for Sale
Jumbo loans are becoming a bigger bargain than conforming loans. (AP)

Jumbo loans are back at bargain prices

Jumbo mortgages have not only been difficult to find but also to afford.

Now, for the first time since the national mortgage meltdown, jumbo loans are becoming a bigger bargain than conforming loans.

Lenders are offering jumbo mortgages at lower rates -- more than a quarter of a percentage point -- than conforming loans that are backed by Fannie Mae and Freddie Mac, CNNMoney reports.

Other than some high-cost areas, jumbo mortgages are for amounts greater than $417,000.

Generally, banks charge higher rates on jumbo mortgages, typically about a quarter of a percentage point more than conforming loans, according to the Mortgage Bankers Association. But recently that has reversed.

For example, Wells Fargo is offering a 30-year jumbo mortgage rate this week at 4.125 percent. In comparison, it is offering a 30-year fixed-rate conforming mortgage at 4.5 percent. US Bank is offering a jumbo mortgage rate for 3.875 percent, compared with 4.25 percent for a conforming loan.

Top Stories

  • Council vs Columbus
    Seattle will consider a resolution to change Columbus Day to Indigenous Peoples' Day

  • Whatever it Takes
    Ricardo Lockette takes playing time with the Seahawks over pride

  • Moving Up
    How Bellevue will handle students who transfer from 'failing' schools
ATTENTION COMMENTERS: We've changed our comments, but want to keep you in the conversation.
Please login below with your Facebook, Twitter, Google+ or Disqus account. Existing MyNorthwest account holders will need to create a new Disqus account or use one of the social logins provided below. Thank you.
comments powered by Disqus
Listen to the show
Hear Real Estate Today on KIRO Radio
Join Tom Kelly every Sunday at 9am on KIRO Radio to talk Puget Sound real estate.

Sign up for breaking news e-mail alerts from MyNorthwest.com
In the community
Do you know an exceptional citizen who has impacted and inspired others?
KIRO Radio and WSECU would like to recognize six oustanding citizens this year. Nominate them to be recognized and to receive a $2,000 charitable grant.