Conforming Mortgage Rates and Jumbo Mortgage Rates

Conforming mortgage rates, also known as conventional mortgage rates, are mortgage rates that are for home loans under a certain dollar amount set by the Federal Housing Finance Agency. The FHFA sets loan limits by county in the U.S. and used to be $417,000 and up to 50% higher in area where home costs are high.

Since the recession of 2009 new loan limits were set through a series of legislative acts that have temporarily increased single family loan limits up to $729,750. You can find the FHFA's loan limits by county right here. Home loan limits by county.

Loan Type
Purchase    Refinance
Location
State/City    Zip Code
Loan Amt Points FICO % Down
  
$
in 06101, 2, 740    Sort by:
Lender
APR
Rate
Cost & Fees
Notes
 
PERIOD_FIXED_30YEARS Mortgage Loan from Rocket Mortgage
Rocket Mortgage
https:https://mortgagerates.icanbuy.com/images/lenderslogos/111574.gif
300000
Purchase
4.039%
3.875%
USD
Rocket Mortgage Logo
NMLS # 3030
10/22/2019
at 2.000 pts
45 day lock rate
Est payment: $1,411
Fees in APR: $6,000
From the lender: We can close your loan in less than a month!
 
PERIOD_FIXED_30YEARS Mortgage Loan from Quicken Loans NMLS #3030
Quicken Loans NMLS #3030
https:https://mortgagerates.icanbuy.com/images/lenderslogos/111724.gif
300000
Purchase
4.291%
4.125%
USD
Quicken Loans NMLS #3030 Logo
NMLS # 3030
10/22/2019
at 2.000 pts
45 day lock rate
Est payment: $1,454
Fees in APR: $6,000
The Better Business Bureau gives Quicken Loans and A+ for customer service.
 
PERIOD_FIXED_30YEARS Mortgage Loan from Quicken Loans NMLS #3030
Quicken Loans NMLS #3030
https:https://mortgagerates.icanbuy.com/images/lenderslogos/111724.gif
300000
Purchase
4.291%
4.125%
USD
Quicken Loans NMLS #3030 Logo
NMLS # 3030
10/22/2019
at 2.000 pts
45 day lock rate
Est payment: $1,454
Fees in APR: $6,000
The Better Business Bureau gives Quicken Loans and A+ for customer service.
 
PERIOD_FIXED_30YEARS Mortgage Loan from Rocket Mortgage
Rocket Mortgage
https:https://mortgagerates.icanbuy.com/images/lenderslogos/111574.gif
300000
Purchase
4.039%
3.875%
USD
Rocket Mortgage Logo
NMLS # 3030
10/22/2019
at 2.000 pts
45 day lock rate
Est payment: $1,411
Fees in APR: $6,000
From the lender: We can close your loan in less than a month!
 
PERIOD_FIXED_30YEARS Mortgage Loan from New American Funding
New American Funding
https:https://mortgagerates.icanbuy.com/images/lenderslogos/111741.gif
300000
Purchase
3.524%
3.375%
USD
New American Funding Logo
NMLS # 6606
10/22/2019
at 1.875 pts
30 day lock rate
Est payment: $1,327
Fees in APR: $5,625
Direct lender specializing in helping you save money on your home loan.
 

Data provided by Informa Research Services. Payments do not include amounts for taxes and insurance premiums. Click here for more information on rates and product details.






These home limits are used by government sponsored enterprises like Freddie Mac and Fannie Mae as a guide to by mortgages from banks and mortgage lenders after the loans are made. Freddie Mac and Fannie Mae do not make loans directly, they only buy mortgages from approved lenders.

The process of buying mortgages from mortgage lenders and banks replenishes their supply of funds and enables lenders to make more mortgage loans to other borrowers. Thus providing liquidity to the mortgage market and lowering mortgage rates.

Jumbo Mortgage Rates


Jumbo mortgage rates are are for home loans that are above conforming home loans. Jumbo mortgage rates are always a little bit higher than conforming mortgage rates because mortgage lenders and banks do not have the guarantee that Freddie Mac or Fannie Mae will buy their loans.

As a result lenders have to sell the mortgages to third party investors and those investors require a little premium because of the risk. During the financial crisis jumbo mortgage rates were about 2.00 percent higher than conforming mortgage rates.

Direction of Mortgage Rates in 2010


The direction of both conforming mortgage rates and jumbo mortgage rates will be higher in 2010. The Boston Federal Reserve President, Eric Rosengren, believes 30 year mortgage interest rates will rise by .75 percent by the end of the first quarter because the Federal Reserve will have completed its $1.25 trillion program of buying mortgage-backed securities.

The $1.25 trillion program was started last year to provide much needed liquity to the mortgage market and to drive mortgage rates down to help the housing market recover.  Now the Fed is winding down the program if mortgage rates do increase by .75 percent that would bring 30 year mortgage rates towards 6.00 percent.
 
 
Author: Brian McKay
January 12th, 2010
Posted in: Mortgage Rates