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If you are currently in a jumbo loan, chances are that you have seen rates on conventional loans drop to decade-lows.

And you might be wondering “when are jumbo mortgage rates going to follow suit”?

But because of jumbo lenders going out of business and other larger lenders tightening guidelines on their jumbo loan offerings, many people have simply been “stuck” in their jumbo loan.

But that may be changing now because interest rates on  jumbo loans have been creeping down in recent weeks and are now at their lowest point since 2003.  More lenders are moving in to offer jumbo loan products to borrowers who can qualify and the market for jumbo loan financing appears to be thawing.

Courtesy WSJ

According to the WSJ:

Just a year ago, the average rate on a 30-year jumbo mortgage—a loan of more than $729,750 not backed by government-sponsored agencies Fannie Mae or Freddie Mac—was 6.86%, according to Greg McBride, a senior financial analyst at Bankrate.com. Now it is 5.48%—a rate that rivals those available during the height of the credit bonanza.

“In just the past couple of months, jumbo loans have really started to be competitively priced,” says Keith Gumbinger of HSH Associates, a publisher of consumer-loan information.

The recent low rates on jumbo loans has caused an uptick in refinancing activity – with some jumbo lenders reporting that jumbo refinancing up as much as 50% vs. what it was last year.

Jumbo Mortgage Refinance: Save Big

When you refinance a loan with a large balance, many people are amazed at the possible monthly savings.  The larger the loan balance, the more possible savings there are just by lowering the interest rate even just one percent.  A simple example pointed out by the WSJ was where a homeowner with a 30-year fixed-rate $800,000 mortgage at 6.86% pays $5,247 a month. If he were to refinance at 5%, his monthly payments would be reduced by $952.

So if you currently have a jumbo loan and have been feeling “stuck” – now may be the time to see how much money each month you could save by refinancing.  Find out more about refinancing your jumbo loan with Academy Mortgage.