Are Jumbo rates coming down?I am looking at today’s rates from four of the large commercial lenders that I use for normal “A paper” loans.This would be someone with good credit, putting down some money and can verify their income.The loan amount of a jumbo loan is over 417,000.

     The rates have come down but still remain in the low to mid 7% range for a 30 year fixed with no pointsConforming (under 417,000) rates are in the low 6% range for the same product. Usually, the jumbo rate should be ¼ percent higher than conforming.Comparatively, these rates are still quite high with an average of 1% above conforming rates.

     There is an alternative. If your loan amount is over 417,000, you can take one loan at the jumbo rate or you can split up your total loan amount into two mortgages.The first mortgage will be 417,000 or below and the second mortgage will make up the difference.Total loan amount will be the same. The difference is that the second mortgage will typically be a HELOC.That rate is based on Prime (currently 7.75%) and will be adjustable.You need to compare the total payment of one loan at the jumbo rate or two loans (one conforming and one based on prime).If there is not much difference in the monthly payments and you have the chance of the rate on the second going up, you might as well take one loan and bite the bullet

Sorry.This is the way it goes if you need to close now.

-Dale Siegel