Compare Jumbo Mortgage Rates

Jumbo loans are larger loans for expensive homes, which makes finding the best jumbo mortgage rates even more important.

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What are jumbo mortgage rates?

Jumbo mortgage rates are interest rates for loan amounts that exceed conforming loan limits set by the Federal Housing Finance Agency (FHFA). In 2023, that limit is $726,200 for a one-unit home in most parts of the country — a loan amount above that limit is considered a jumbo loan.

For high-cost parts of the country, you’ll need to search for jumbo mortgage rates if your loan amount is above $1,089,300 for a single-family home. These limits change yearly based on increases or decreases in average U.S. home values over the previous four quarters.

What is a jumbo mortgage?

The term “jumbo mortgage” typically refers to a home loan at a loan amount above the conforming loan limits set each year by the FHFA. However, it can also be a loan of any size that doesn’t fit into other loan categories. These types of jumbo loans often cater to borrowers with poor credit and may not require standard income documentation or may allow for interest-only payments.

Jumbo mortgages are also called “non-conforming loans” because they follow rules set by individual investors, rather than Fannie Mae and Freddie Mac. Jumbo lenders may offer programs on properties that are hard to appraise or for wealthy self-employed borrowers and doctors who are just starting their practices.

How do jumbo mortgage rates work?

Lenders typically hold jumbo mortgages in their loan portfolios, which means they can set interest rates based on their own standards. Investors may price their rates based on a number of factors including credit scores, down payment, size of the loan and the location of the home.

Historically, jumbo rates have been higher than conforming conventional mortgage rates, but during periods of strong economic and housing growth, jumbo rates may actually be lower. The wide variation in rates and programs offered by jumbo mortgage lenders makes shopping around especially important.

What are jumbo mortgage requirements?

Lenders typically set stricter qualifying guidelines for jumbo mortgages. Jumbo mortgage requirements may include:

  • A down payment of at least 20%
  • A minimum credit score of 700 or higher
  • A debt-to-income (DTI) ratio of 45% or lower
  • A maximum loan amount of $1 to $2 million
  • Several months’ (six to 24 depending on the lender) worth of cash reserves in the bank

Because jumbo loans don’t adhere to rules set by a government agency, some lenders offer niche jumbo programs for borrowers with unusual circumstances such as:

How to get the best jumbo mortgage rates

You may find big differences in 30-year jumbo rates offered by different mortgage companies, but in most cases, you’ll get the best jumbo loan rates by following these six steps:

  1. Boost your credit score. Although a 700 credit score will typically get you a jumbo loan approval, jumbo lenders often offer the best jumbo rates to the higher-credit-score borrowers.
  2. Make a bigger down payment. You’ll need at least 20% down, but you may be rewarded with a lower rate if you can come up with more. If you have some wiggle room with your down payment, make sure you let the lenders know when you start shopping.
  3. Check with your local or investment bank. Institutional banks may offer special rates on jumbo loans to customers with large deposit balances and investment portfolios.
  4. Check with mortgage banks and mortgage brokers. You may find a mortgage broker or mortgage bank with a special jumbo loan program.
  5. Avoid low documentation loan options. Jumbo lenders may offer loans with less stringent documentation requirements, such as bank statements instead of tax returns, for unique employment scenarios. However, you may pay a higher rate for the extra flexibility.
  6. Watch for prepayment penalties. That low jumbo mortgage rate offer may come with a penalty if you pay the loan off within a set number of years. Ask your loan officer if the rate quote you’re getting includes a prepayment penalty.

Why you should compare jumbo mortgage rates

You should compare jumbo rates for a number of reasons:

  • 1. Not all lenders offer the same jumbo mortgage programs

  • If you have a high credit score and stable income, you probably won’t get the best rate quote from a jumbo lender that specializes in bank statement loans for poor credit mortgage borrowers.


  • 2. Mortgage banks and mortgage broker investors vary

  • Lenders may choose to do business with just a few types of jumbo investors, while others offer programs from dozens of jumbo investors.


  • 3. Not all loan officers are experienced with jumbo loans

  • The guidelines and requirements for jumbo loan programs can be complicated, and pricing them accurately requires attention to detail and training — something experienced jumbo loan officers have. Shop around for a loan officer that has at least a few years of experience originating jumbo loans.


How to avoid jumbo mortgage rates

There are a few options that may help you avoid a jumbo loan rate.

  • Consider a piggyback loan

  • A piggyback loan is a first and a second mortgage taken out at the same time and secured by the home you’re purchasing.  To avoid a jumbo loan, you’d take out a first mortgage up to the maximum limit for your area, and then add (or piggyback) a second mortgage such as a home equity loan or a HELOC for the difference up to the amount you want to borrow. Just keep in mind that having more than one mortgage at a time—also known as utilizing “subordinate financing”—can trigger higher interest rates or extra fees.


  • Explore bridge loan options

  •  If you’re trying to buy a pricey home but are waiting for your current home to close to make a big down payment, a bridge loan allows you to access equity in your current home while it’s for sale. You can use the bridge loan cash to keep the loan balance on your new home at or below conforming loan limits, and then pay the bridge loan off when your current home sells.


30-year fixed-rate jumbo vs 15-year fixed-rate jumbo loan rates

Deciding between a 30-year and a 15-year fixed-rate jumbo loan comes down to how much you can qualify to borrow. The table below gives you an idea of the payment difference between a 30-year jumbo rate at 6%, and a 15-year jumbo rate of 5.5% on a $1 million loan amount.

Loan amountLoan termMonthly principal and interest payment
$1,000,00030 years$5,995.51
$1,000,00015 years$8,170.83

Many jumbo lenders offer adjustable-rate mortgage (ARM) options with a lower initial rate that usually lasts for three, five, seven or 10 years. After the initial fixed-rate period ends, the rate changes based on the terms of your ARM agreement.

Some jumbo lenders even offer an interest-only option for jumbo loans. Once the interest-only period ends, you pay the remaining balance in installments for the remaining loan term, which could be a shock to your budget if you don’t pay your loan balance down before the bigger payments begin.

Jumbo mortgage rates FAQs 

You should consider a jumbo mortgage if you’re buying an expensive home and need a loan higher than the conforming loan limits in your area.

A jumbo loan allows you to borrow more money than conventional loan programs allow. You can keep some of your cash assets in the bank and potentially increase your mortgage interest tax write-off.  One caveat: The mortgage interest deduction is capped at $750,000 for individuals but drops to $375,000 per spouse for married couples filing separately.

The amount of what is considered a jumbo loan varies depending on the part of the country where you’re looking to purchase. If you’re buying a single-family home in most U.S. counties, a loan amount above $726,200, requires a jumbo loan. In high-cost areas, that amount rises to $1,089,300.

Yes. Jumbo refinance loans work much like conventional, conforming refinances, but set stricter limits for income, credit and credit scores. One tip: Conforming loan limits change every year, so you may be able to avoid the tougher jumbo approval standards by checking the limits in your area annually.

Most jumbo loans are “manually underwritten.” A human underwriter does most of the review, instead of the automated underwriting systems (AUS) typically used for conforming loans.