SoCal Mortgage Blog

May 7, 2010 2:05 PM EDT 

CALABASAS, Calif.--(BUSINESS WIRE)-- With a significant rise in the demand for jumbo mortgage loans, lenders are beginning to revamp their jumbo lending programs to satisfy consumer demand. Informa Research Services, a subsidiary of Informa plc (LSE: INF), suggests homebuyers look online to find the best available rates on conforming and jumbo home loans (http://www.erate.com/mortgage_rates_search.htm).

According to the Wall Street Journal, “rates on jumbo loans have…fallen to their lowest level in years.” The national average rate on a 30 year fixed jumbo mortgage is currently 5.97% (Source: Informa Research Services’ Interest Rate Review). Rates on both jumbo and conforming loans are easily found online by looking at the rate comparison tables on ERATE.com.

As reported in American Banker, chief executive of Citigroup’s CitiMortgage unit Sanjiv Das said that “the demand for jumbo loans is becoming very strong, particularly in New York and California.” He also expressed that making jumbo loans available for borrowers is currently a “priority” for his company.

Even though financial institutions are looking to expand their jumbo offerings, they are still seeking the most qualified borrowers. Lenders still maintain stringent requirements such as “minimum credit scores of 740 and down payments of at least 20% for loans up to $1 million” (Source: Wall Street Journal). This means that a consumer looking to secure financing for a home purchase should be actively protecting and working to improve their credit score.

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About Informa Research Services, Inc. (www.informars.com)

Since 1983, Informa Research Services, Inc., has provided the financial industry's most extensive array of market research and decision-support information.

Informa Research ServicesJames Royal, 818-880-8877Fax 818-880-2069

Source: Informa Research Services, Inc.