Tyler Frank,
Paramount Mortgage
NMLS ID 942420
St Louis Mortgage companies were not making many 30-year, fixed-rate jumbo mortgages a year ago, but now many St Louis Mortgage companies are offering fixed jumbos – with very competitive rates, including my firm, Paramount Mortgage.
As interest rates start to rise, homeowners are thinking they may not see rates this low in the future and if their ARM is maturing a couple of years from now, they could be in a tough spot.
“During the mortgage crisis, the vast majority of jumbos were adjustable-rate mortgages and hybrid adjustable-rate mortgages, which started at low fixed rates and switched to adjustable interest rates at the end of a set time period – typically of five, seven or 10 years, said Keith Gumbinger, vice president at HSH.com, a mortgage-information website. Now, with real estate rebounding, there has been a comeback of the secondary market, in which mortgage-backed securities are sold to investors. Since this lessens the risk to lenders, more mortgages are being offered with fixed rates.
Tyler Frank, general counsel and mortgage banker withParamount Mortgage Company, states, “Assuming 25% down, fixed-rate jumbo loan pricing for a 975k loan, as of the week of June 9-16, was 4.125% for a 30-year, 4.0% for 20-year and 3.25% for 15-year.
“The general wisdom when deciding between an ARM and a fixed jumbo is the same as with any mortgage,” Mr. Gumbinger said. Buyers should ask themselves: How long will I stay in the house? If the length of time is near or less than the length of the ARM, then you’ll save money with the ARM, he said.
Tyler is “big brother” mentor and role model to a young man through the Big Brothers Big Sisters of Eastern Missouri. He is a member of the St. Louis Sports Commission’s Associates Board, the University of North Carolina at Chapel Hill’s Alumni Admissions Committee and Mary Institute and St. Louis Country Day’s Alumni Executive Committee. In 2012, Tyler successfully summited Mt. Kilimanjaro (19,341 ft.) in Tanzania, Africa, and ran his first full marathon.
Tyler can be reached by email at tfrank@paramountmortgage.com or by phone at 314.372.4313.
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