Best Rates on Los Angeles Jumbo Loans

A jumbo loan (a.k.a. non-conforming loan) is a mortgage with a loan amount that exceeds the conforming loan limit set by government-sponsored mortgage lenders, Fannie Mae and Freddie Mac. The current jumbo loan amount is set for mortgages over $417,000 (APR based on $500,000).

Why Do Jumbo Loans Exist?
Owning a home in LA is expensive. In rural areas, a $400,000 home might be considered a mansion. In Los Angeles, however, a $400,000 might be considered a basic home. Jumbo loans go into effect when traditional mortgage loans cannot cover the full amount to be borrowed. This often happens in more expensive areas and populated urban areas like Los Angeles.

Advantages & Disadvantages
Jumbo loans have higher interest rates than traditional mortgages, but they offer greater financial flexibility and allow qualified borrowers to purchase more expensive homes. Borrowers can receive Los Angeles jumbo loans in various mortgage packages, including:

• Fixed Rate Mortgages (FRM);
• Adjustable Rate Mortgages (ARM);
• FHA loans up to 97% financing.

Jumbo loans have become more and more popular with today’s low interest rates. People can now borrow more money at a lower rate in order to get the home of their dreams.

Current Los Angeles Jumbo Loan Rates
Today’s best rates* for Los Angeles jumbo loans are as follows:

For a 30-year Fixed LA Jumbo Loan
Between 4.750%; 4.869% APR and 5.625%; 5.849% APR

For a 15-year Fixed LA Jumbo Loan
Between 4.875%; 5.02% APR and 5.500%; 5.858% APR

For a 7/1 Adjustable LA Jumbo Loan
6.125%; 4.408% APR

For a 3/1 Adjustable LA Jumbo Loan
Between 3.875%; 3.915% APR and 5.250%; 5.301% APR

For a 3/1 Adjustable LA Jumbo Loan
Between 3.750%; 3.785% APR and 4.625%; 3.949% APR

In order to find the best mortgage rate to fit your needs, speak with a mortgage lender about your current financial situation and your future home-owning goals. They will work with you to find the best Los Angeles jumbo loan to fit your needs.

* Source: Los Angeles jumbo loan rates from Mortgage Loan Directory and Information, Inc.

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