California. “Jumbo loans, both adjustable and fixed-rate, increased by 34 percent to $216 billion in the first nine months of this year, with ARMs comprising the majority of the gain, said Guy Cecala, publisher of Inside Mortgage Finance. In early December, Jim Pietrocini refinanced his 4,600-square-foot Carlsbad, California, home. Pietrocini couldnt 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.” “‘I have two kids who are...
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