Jumbo Mortgage Refinance: How To Qualify
A jumbo mortgage refinance works a lot like getting a jumbo loan to buy a home. You can use the refinance to lower your interest rate, swap out your loan term or borrow against your home equity. All of these options can be financially beneficial over the long term, but you’ll need to compare current jumbo refinance rates to make sure it’s worth it.
Qualifying for a jumbo mortgage refinance is a bit tougher than qualifying for a standard (conforming) mortgage refinance, however. We’ll cover what you need to know before taking advantage of the perks of a jumbo refinance.
1. Determine your loan type
Before starting the mortgage refinance process, first check whether your refinance actually needs to be jumbo. If you’ve paid down your mortgage quite a bit, you may not need a jumbo refinance loan, which can make the process easier and cheaper.
How high your loan amount can be before it becomes “jumbo” changes each year, when the Federal Housing Finance Agency (FHFA) sets conforming loan limits. In 2025, the conforming loan limit for a single-family home in most of the U.S. is $806,500, and rises to $1,209,750 in some high-cost areas.
Find the exact limits in your area with our loan limits map.
2. Know your refinance purpose
Take the time to consider what you want your refinance to achieve — regardless of whether it needs to be jumbo or not. You may want to:
- Get a better interest rate. If your credit score has improved, you’ve paid down some debt or boosted your savings and income, you may qualify for a better mortgage rate.
- Lengthen your loan term. A jumbo mortgage refinance could give your monthly budget some wiggle room. If, for instance, you have 20 years left on your mortgage, refinancing to a 30-year mortgage will likely lower your payments.
- Shorten your loan term. If you can afford a higher monthly payment, you could save thousands in interest by switching to a shorter-term, such as a 15-year fixed-rate, jumbo loan.
- Take cash out. Convert home equity to cash by borrowing more than you owe with a jumbo cash-out refinance. You can use the extra funds to pay off debt or make large purchases that would cost more to finance via other means. Crunch the numbers with our cash-out refinance calculator.
- Switch to a flexible interest rate. Jumbo adjustable-rate mortgages (ARMs) typically feature a lower rate for a set time, such as three, five or seven years and then adjust based on the terms. They can be a good choice if you plan to sell your home before the initial fixed-rate period expires.
- Make interest-only payments. Some loans allow you to just pay the interest you owe each month for a set time, which significantly lowers your monthly payments. This may be a good choice for temporary savings, as long as you have the resources to make the full payment once the interest-only period ends.
Is a refinance worth it? Use a refinance calculator to find out.
Current jumbo mortgage rates are only slightly better than they were last year, when they averaged 7.02%. Jumbo refinance borrowers have paid 6.91% on average over the course of 2025 so far.
The Federal Reserve has signaled it intends to make two cuts in 2025 and, if it does, rates could embark on a downward trajectory. That said, jumbo mortgage rates generally sit a little bit higher than conforming (conventional) mortgage rates.
Visit our latest mortgage rates forecast for ongoing insights.
3. Check your finances
Jumbo refinance guidelines set a higher bar than conforming loan refinance requirements. Although they vary by lender, jumbo refinance requirements typically include:
- A minimum 680 to 700 credit score
- A maximum 45% debt-to-income (DTI) ratio
- Mortgage cash reserves equal to at least six monthly mortgage payments
- A minimum amount of home equity, which may be in the ballpark of 20% to 35%
- No major credit problems in your recent past, such as bankruptcies or foreclosures
If you don’t meet these requirements, all is not lost. There are non-qualified mortgage (non-QM) loans, which have more flexible requirements but typically cost more. You could also take time to improve your credit score and financial strength before applying for a jumbo mortgage refinance.
4. Shop around for the best rate (and lock it in!)
Shop and compare rates with at least three to five lenders to ensure you’re getting the best deal. Not all lenders offer the same jumbo mortgage programs and rates.
Once you’ve found a good deal, be sure to ask your loan officer about their rate lock option for jumbo loans — some lenders require a loan approval before locking in a jumbo loan interest rate.
Compare mortgage rates from top lenders in minutes
5. Fill out the paperwork
Jumbo loans typically require more paperwork and take longer to close than standard loans because a human loan underwriter, rather than an automated algorithm, will ensure the loan meets the proper standards.
To help move the process along, respond to any lender requests quickly. It can be good to have some things on hand and ready, such as full documentation of all your income sources, tax returns, pay stubs, CPA letters and IRS validation of all filed tax forms.
Have funds ready to go as well. Refinance closing costs can be anywhere between 2% to 6% of the loan amount.
6. Review your closing disclosure
All mortgage refinance lenders must provide you with a closing disclosure three business days before your closing. Review the document and, if everything is correct, go ahead and sign. Your old jumbo loan will be paid off and your new jumbo loan will take effect.
Be aware that jumbo refinances come with a right of rescission, which gives you three business days — including Saturdays, but not Sundays or federal holidays — to change your mind after signing the loan documents.
Frequently asked questions
Some people refer to FHA loans that exceed the FHA loan limit “floor” as “FHA jumbo loans.” However, these aren’t actually jumbo loans since they don’t exceed either the FHA loan limit nor conforming loan limit set for their county. They’re just loans with a higher FHA loan limit because they’re used for homes that are located in a high-cost area.
Jumbo loans are more expensive than conforming loans, both in terms of upfront and total costs. You’ll need a larger down payment, you’ll likely pay higher fees and you’ll encounter more expensive interest rates.
In most cases, no. Available underwater loan programs are typically for non-jumbo loans. You may be able to work out a mortgage modification with your current lender or servicer if you contact them directly.
A piggyback loan is one way to avoid a jumbo mortgage refinance, and involves taking out two loans instead of one. You borrow up to the maximum conforming loan limit with a first mortgage and cover the remaining amount with a home equity loan or home equity line of credit (HELOC).
For example, if your loan balance is $950,000, you could take out a first mortgage for up to the maximum conforming limit of, say, $806,500, and add a HELOC for up to $143,500 to cover the difference, minus your down payment. The combination of the loans allows you to avoid a jumbo loan refinance.
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