CNN Money
Not only are big-pocketed borrowers paying lower average rates on the high dollar value loans known as jumbo mortgages, but lenders are now requiring even smaller down payments — and, in some cases, they are waiving the mortgage insurance, too.
For months, lenders of jumbo mortgages have been charging interest rates that are lower than what average borrowers pay.
The Mortgage Bankers Association reports that the average rate on jumbo loans — mortgages of $417,000 or more (or $625,500-plus in high priced markets) — was 4.24% last week, compared with 4.36% for conventional 30-year, fixed-rate mortgages.
And now some lenders have reduced the required down payments on these loans to as little as 10%, down from 20%, according to Tom Wind, executive vice president of home lending for EverBank.
