From TFA "the jumbo loan is supposed to come with a slightly higher rate". IMO the rate should be a LOT higher; otherwise PMI is always a losing proposition. Bizarre market forces indeed.
It was certainly surprising/counterintuitive that jumbo rates would be lower than conforming, but even when they're not, it sounds like they're incredibly close.
That said, if someone wanted to throw $500k at me to buy a house, I wouldn't turn it down :)
September 2016: http://www.bankrate.com/financing/mortgages/jumbo-home-rates...
From TFA "the jumbo loan is supposed to come with a slightly higher rate". IMO the rate should be a LOT higher; otherwise PMI is always a losing proposition. Bizarre market forces indeed.
It was certainly surprising/counterintuitive that jumbo rates would be lower than conforming, but even when they're not, it sounds like they're incredibly close.
That said, if someone wanted to throw $500k at me to buy a house, I wouldn't turn it down :)