Jumbos Surge 34% With Record ARMs Belying ’08 Anxiety: Mortgages
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Jim Pietrocini has joined the jumbo adjustable-rate mortgage party.
In early December, he refinanced his 4,600-square-foot Carlsbad, California, home that overlooks the Pacific Ocean. Pietrocini, a computer software consultant, couldn’t resist the deal on the jumbo, a loan exceeding the limit the government will buy. His $744,000 mortgage at 3.5 percent, which adjusts annually after seven years, will save him almost $8,000 a year compared with a fixed rate loan at 5 percent.