Although many financial institutions are offering interest rates at historic lows, one area of the market – jumbo loans – still is hovering around 7 percent, leading some homeowners to rethink their refinancing plans. Rates on jumbo loans tend to be higher because lenders are having difficulty selling them on the secondary market. Because jumbo loans typically carry a higher mortgage interest rate than a conforming loan, it can lead to higher monthly payments, which can negatively impact affordability for households in California.
