A few ways to offset today's higher rates (from a loan officer).
Check rates with credit unions, especially for jumbo loans. Many currently have lower jumbo rates than big banks. Credit Unions rates haven’t increased as much because they don’t have the same global risk exposure, while many big banks have tightened up recently.
- Consider a 5, 7 or 10/6 ARM instead of a 30-year fixed. ARMs are often 0.5%+ lower and can make sense if you don’t plan to keep the loan (refi) long term.
- If your loan amount is above $832,750, check credit unions. Many treat that as jumbo, which prices lower than conforming loans right now. Keep in mind jumbo loans usually require at least 20% down.
- Ask about relationship discounts. Some credit unions and regional banks reduce rates if you move deposits or investment accounts over. Example: bringing $250k+ in assets may qualify you for about a 0.25% rate reduction.
- Ask about streamline or low-cost refinance options later. If rates drop, refinance costs matter too — not just today’s rate.