Just be sure you get the full picture regarding not only the rates, but the fees associated with each loan.
Some people on this thread said to check Bankrate.com. I would not take anything at face value from bankrate. They are being sued left and right by mortgage companies currently. They sell their advertising to lenders/brokers who have no obligation to deliver the rate they are advertising. If it looks too good to be true then it usually is. Try googling it and you will see what I mean.
I'm a boutique banker/direct lender and I sell all the big bank's products.
Direct Lender (e.g., BofA, WAMU, Wells) versus Mortgage Brokers
If your financial situation is â€œVanillaâ€ that is,
- 2years history of employment,
- 2 years history of paying rent,
- Seasoned down payment and 4-6 months reserves in addition to down payment,
- Debt-to-income ratio
Others have given you quite a few names, so I won't go there.
My company, Frank Howard Allen Realtors, is affiliated with North Coast Mortgage and they have a mortgage broker located in my office - No, we are not required to use them and we don't get any referral fee from the either - but the broker would be at our weekly meeting to give us her outlook on the lending industry. Due to Marin's housing price, they do a lot of jumbo loans.
Anyway, the mortgage broker at my office brought up a strategy to split the jumbo loan which is interesting. Because of the increase in jumbo rate, she suggested that our clients might want to think about getting a 1st loan just under the limit of the conforming loan, which has lower rate now, and then a 2nd 7 year fix loan for the remainder, minus the down.
Just something to think about when you shop around.
Sylvia . .
One thing you need to be able to do is to compare apples to apples.
The best rate may the worst deal. How could that be, you ask. - (Or it could be the best deal)
1. What are the closing costs involved with just the loans. Remember Title insurance, and transfer tax are going to be pretty much the same across all lenders as they have nothing to do with charging or earning those fees, but they still have to estimate them to you. - So just loan fees okay - compare them.
2. Prepayment penalty or no ? Don't assume that it is neccesarily a bad thing. If you are 95 tp 99% sure that you will not need to sell or refinance in the next three years, a prepayment penalty may allow you tosave on some upfront loan fees.
3. Length of fixed period , As a rule the longer the fixed period, the higher the rate, 30 year fixed are usually the highest rates. If you can plan ahead with some certainty, you may be better off with a ten year a five year, or even a three year fixed period. . .. If the rate is sufficiently lower for the shorter periods to make a serious difference.
4. Fully amortized, interest only, and "pay option". -- Rates are slightly better for amortized than they are for interest only. Rates are often worse for some of the "pay option" type loans, which have the negative amortization option.
5. Down Payment 20% is good, You may receive a slightly lower rate on a Jumbo if you can swing 25% down.
6. Loan size: some programs are bracketed, say $417-750 is at the best possible rate and $750K -1MM is a tiny bit worse. I liked Aaron's caution about the possible difference between a $999,999 loan and a 1MM loan requiring a review appraiser and its fee.
You did not mention if you are able to fully document your income and assets. Special situations such as stated income, no ratio verification, or no income/asset verification can change the pricing model.
Also, the difference between $999,999 and $1 million may be the difference between having to get a "review appraisal" or not - an additional expense.
It can be useful to work with a mortgage banker or broker that specializes in the luxury market as they know all of the subtle nuances that can help minimize your rates and fees.
[This is my area of expertise, so I would be happy to be of assistance. :) ]