Mortgage Blog

Some borrowers asked whether my rates were not correct since the Jumbo or High Balance rate is lower than the conforming rate. Actually the rates are correct. HB or Jumbo loans might have better rates because the loan amount is bigger, but the closing cost for the smaller loans are still very similar to bigger loans. So if the pricing about the same, the bigger loan amount will have better rates.

And Jumbo market is different from the Conforming/HB loan market. The latter was determined by MBS(mortgage backed security). The Jumbo rate will be determined by investors.