How Do You Know It’s the Lowest Jumbo Mortgage Rate?

If you Google “lowest Jumbo mortgage rate”  today and click on any of the trusted syndicates, like Bankrate or Investopedia, you’ll likely see a very eye-catching rate- maybe one that’s too good to be true. Oftentimes, those kinds of rates come at an average cost of 1.33 points. In this article, we are putting the “discount points” caveat into perspective.  

The Lowest Jumbo Mortgage Rate

Let’s say you are putting 10% down on a $1M home. Factoring in average discount points, you would need to bring an additional sum of almost $12k to the closing table. The question to ask is how many monthly mortgage payments will you have to make at the discounted rate before you have recovered your $12k and truly see savings? Before you make the decision to purchase discount points, a mortgage banker should go over this timetable with you. 

Alternatively, finding a lender that specializes in Jumbo Loans and has access to lower rates (like United Home Loans) allows you to compare the savings timetable between a lower, zero points rate and a bank or broker rate that is discounted by points. Depending on the market, you may find that either (a) the purchase of points takes longer to break even on than you plan on staying in the home and (b) the long-term savings of points are so nominal in comparison to a lower, zero points rate that the added upfront cost might be more wisely invested elsewhere.

How We Do It 

So, how is it that we are able to offer the lowest jumbo mortgage rates without points? We have been building relationships with both the largest banks and the smaller specialty investors since our inception. This allows us to offer more loan options at better rates. There is also something to be said about our impassioned aversion to discount points and our stance on free quotes actually being easy to obtain. In short, everything we do is driven by the honest question, “How can we offer borrowers lower rates and more solutions?” 

Lock It In

Remember, it only takes about fifteen minutes to get pre-approved for today’s incredible Jumbo rate. Talk to a mortgage expert or start your application here!