July 13th, 2010 9:35 AM by Joan Rusco
Veterans please excuse us from our usual posts on VA mortgage loans for just a moment while we shout out to Minnesota residents carrying Jumbo mortgages (over $417,000). Minnesota jumbo mortgage rates have plunged! Really, we’re seeing in Minnesota the same that’s happening nationwide. Our Jumbo mortgage rates are the lowest they’ve been in 7 years. In many cases you can refinance to below 6%. While we’ve been refinancing and doing purchase mortgages for Minnesota Veterans using their VA benefits we just couldn’t stand by and not say something to all Minnesota residents who are sitting on higher interest jumbo loans.
So what does this mean to a homeowner? It means saving hundreds of dollars a month on your mortgage payment. A homeowner with a $600,000 mortgage at 7.5% has a payment of about $4195. If the homeowner refinances that jumbo mortgage down to 5.5% the payment would be about $3407. That means saving about $788 every month or almost $9500 a year in mortgage payments. You can see why we’re very excited about this prospect for the jumbo mortgage holders in Minnesota!
Now here’s the rub; many homeowners who just purchased their large luxury homes may not have sufficient equity. The upper end of the real estate market has really taken a hit in recent years and in some areas of Minnesota luxury home prices have fallen 40%. Nationally the news is improving with prices starting to recover somewhat. Sales of multi-million dollar homes are up over 30% from the previous year. Some of this increase is due to the availability of jumbo mortgages. There are other factors on your ability to refinance or get a purchase money jumbo mortgage. Chief among them is the amount of other debt you’re carrying and your credit score.
Before you decide you can’t save yourself hundreds of dollars a month by refinancing your Minnesota jumbo mortgage you should let us take a look at your possibilities. While we love working with our Veterans who have served us so well, we also want to reach out to all Minnesota residents who deserve a break in these tough economic times. Don’t let these historic low mortgage rates (Jumbo or not) pass you by!