Compare Today’s Jumbo Mortgage Rates

There are areas in the U.S. where property values for an average home are well above the threshold of a standard mortgage loan. The amount you may need to borrow for a home may be more than a conforming loan would allow. A jumbo home loan is available when you’re purchasing a more expensive home — or one in a high-cost area.

If you need to borrow more than $510,400, you’ll need a jumbo home loan. For high-cost areas, the amount is $765,600. A jumbo loan has more stringent requirements than a conforming loan. To get the best deal on jumbo loan mortgage rates, you need to shop around for competitive APRs and examine your loan estimate after applying to assess what your closing costs will be with each lender.

In this article

    Current jumbo mortgage rates

    According to Bankrate’s latest survey of the nation’s largest mortgage lenders, these are the current refinance average rates for a 30-year, 15-year fixed and 5/1 adjustable-rate mortgage (ARM) refinance rates among others.

    Product Interest Rate APR
    30-Year Fixed Rate3.030%3.370%
    30-Year FHA Rate3.240%3.740%
    30-Year VA Rate2.960%3.120%
    30-Year Jumbo Rate3.090%3.210%
    20-Year Fixed Rate2.980%3.270%
    15-Year Fixed Rate2.560%2.890%
    15-Year Fixed Jumbo Rate2.600%2.660%
    5/1 ARM Rate3.060%4.060%
    7/1 ARM Rate2.950%3.960%
    7/1 ARM Jumbo Rate2.910%3.930%
    10/1 ARM Rate3.040%3.910%

    Rates data as of 10/21/2020

    Best jumbo loan mortgages lenders of 2020

    Compare current mortgage rates by lender

    BankLoan Types OfferedAPR
    Wells Fargo30-year fixed
    15-year fixed
    7/1 ARM
    10/1 ARM
    3.44%
    3.33%
    2.87%
    2.99%
    Bank of America30-year fixed
    15-year fixed
    5/1 ARM
    3.50%
    2.83%
    2.97%
    U.S. Bank30-year fixed
    20-year fixed
    15-year fixed
    3.70%
    3.599%
    3.50%
    Ally30-year fixed
    15-year fixed
    5/1 ARM
    3.80%
    3.54%
    3.03%
    USAA30-year fixed
    30-year VA
    4.79%
    4.85%
    Citizens30-year fixed
    15-year fixed
    7/1 ARM
    3.54%
    2.94%
    2.84%

    Best 15-year rates – Wells Fargo

    Homeowners looking to pay their mortgage off in 15 years or less should put Wells Fargo on their shortlist. The financial institution has one of the lowest interest rates available for a short-term jumbo loan.

    J.D. Power Rating
    3/5
    Min. Credit
    620
    Min. Down Payment
    3%
    SimpleScore
    3.6 / 5.0
    close
    SimpleScore Wells Fargo 3.6
    Perks 4
    Credit Impact 3
    Customer Satisfaction 3
    Product Variety 4
    Fees 4

    Wells Fargo is one of the country’s largest banks with branches nationwide. If you prefer to meet in person with a loan officer, you should have no problem finding one near you. Wells Fargo offers competitive interest rates on all its jumbo loan products. Current account holders could save further — the bank offers a relationship discount on a jumbo loan.

    Although there are plenty of Wells Fargo locations available nationwide where you can walk in and apply for a home mortgage, you can also start the process online. Once you’re approved, you can manage your loan and make payments through the online portal.

    Note: The lender information (Min. Credit Score and Min Down Payment) included refers to a conventional loan. For more information on jumbo mortgages, please visit the lender site.

    Best for existing customers – Bank of America

    Bank of America provides low interest rates on its home loans. Since you’re borrowing enough to need a jumbo loan, the savings can make a significant difference on your monthly payments.

    J.D. Power Rating
    3/5
    Min. Credit
    620
    Min. Down Payment
    3%
    SimpleScore
    3.8 / 5.0
    close
    SimpleScore Bank of America 3.8
    Perks 5
    Credit Impact 3
    Customer Satisfaction 3
    Product Variety 4
    Fees 4

    Bank of America is a good option if you’re shopping around for a jumbo loan, especially if you’re an existing customer. The bank offers existing customer discounts through the Preferred Rewards program. Customers have access to savings that include special discounts of $200 to $600 on closing fees or a small rate reduction.

    The bank is one of the most successful traditional banks at upgrading its digital presence to compete with online-only mortgage lenders. You can prequalify for a jumbo mortgage through the mobile app or website. You can even continue the application online and sign documents electronically.

    Note: The lender information (Min. Credit Score and Min Down Payment) included refers to a conventional loan. For more information on jumbo mortgages, please visit the lender site.

    Best for credit over 740 – U.S. Bank

    If you need a specific loan term, U.S. Bank is the best option. It offers jumbo loans beyond the conventional 30 or 15-year term.

    J.D. Power Rating
    3/5
    Min. Credit
    620
    Min. Down Payment
    3%
    SimpleScore
    4 / 5.0
    close
    SimpleScore U.S. Bank 4
    Perks 4
    Credit Impact 4
    Customer Satisfaction 3
    Product Variety 5
    Fees 4

    A jumbo home loan is a big financial commitment. The sooner you pay it off, the more you’ll save in interest. Choosing a 15-year term may seem tempting, but many borrowers may not be able to afford the high monthly payment. U.S. Bank offers a loan term that balances the need to pay off the mortgage faster while still having affordable payments — the 20-year fixed mortgage.

    Regardless of the loan term you choose from U.S. Bank, the online application process is fairly seamless, however, the bank does require credit scores of 740 to qualify for the loan.

    Note: The lender information (Min. Credit Score and Min Down Payment) included refers to a conventional loan. For more information on jumbo mortgages, please visit the lender site.

    Best online bank – Ally Bank

    Are you willing to give online lending a try? If you are, you may receive the best interest rate on your jumbo mortgage.

    J.D. Power Rating
    N/A
    Min. Credit
    620
    Min. Down Payment
    3%
    SimpleScore
    3.8 / 5.0
    close
    SimpleScore Ally Bank 3.8
    Perks 4
    Credit Impact 4
    Customer Satisfaction N/A
    Product Variety 3
    Fees 4

    Ally Bank is an online-only mortgage option — and it may make you happy to switch to a fully online loan process.

    Ally Bank’s jumbo loan rates are lower than a traditional bank’s. When you think about how it does business, it shouldn’t come as a surprise. The online financial institution doesn’t have the overhead of maintaining branches open nationwide — and paying for the staff to run them. The bank passes its savings back to customers in the form of lower fees and interest rates on mortgage loans and higher interest on your savings.

    Note: The lender information (Min. Credit Score and Min Down Payment) included refers to a conventional loan. For more information on jumbo mortgages, please visit the lender site.

    Best for military members – USAA

    USAA is a reputable, well-respected mortgage lender. But VA loan applicants should watch out for the VA funding fee.

    J.D. Power Rating
    5/5
    Min. Credit
    620
    Min. Down Payment
    3%
    SimpleScore
    3.8 / 5.0
    close
    SimpleScore USAA 3.8
    Perks 4
    Credit Impact 3
    Customer Satisfaction 5
    Product Variety 4
    Fees 3

    Veterans Administration-guaranteed jumbo loans are not easy to find. One of the benefits of a VA loan is that no down payment is required up to your entitlement, saving you from having to potentially pay out a six-figure sum at closing.

    Although USAA has high customer reviews from J.D. Powers and a solid reputation among military members, it’s worth comparing a couple of other mortgage lenders to ensure you’re getting mortgage terms you’d be happy with. The low to no down payment option is a great selling point, but the loan’s closing costs may be more than you’re willing to pay.

    Note: The lender information (Min. Credit Score and Min Down Payment) included refers to a conventional loan. For more information on jumbo mortgages, please visit the lender site.

    Best for cashback rewards – Citizens Bank

    Citizens Bank may have the most transparent mortgage loan experience of all lenders. You’ll be able to access detailed information about your loan before you move forward so you can make the best choice.

    J.D. Power Rating
    5/5
    Min. Credit
    Not Specified
    Min. Down Payment
    Not Specified
    SimpleScore
    4.2 / 5.0
    close
    SimpleScore Citizens Bank 4.2
    Perks 5
    Credit Impact 5
    Customer Satisfaction 4
    Product Variety 4
    Fees 3

    Citizens Bank offers the largest range of jumbo loans in this best jumbo mortgage roundup. Besides the variety, the bank’s interest rates are competitive — if you’re willing to sign up for autopay, deduct an additional 0.125% from the rates disclosed above.

    If you’re worried about how much house you can afford, you can use the bank’s rate search calculator to get a detailed quote on the types of jumbo loans available for your particular needs. You’ll also see interest rates, closing cost fees, points and estimated monthly payment amount. The clear and detailed information provided may give you a better idea of what type of jumbo loan will suit your budget best.

    Note: The lender information (Min. Credit Score and Min Down Payment) included refers to a conventional loan. For more information on jumbo mortgages, please visit the lender site.

    What is a jumbo mortgage?

    A jumbo home loan provides buyers with a mortgage option when they’re purchasing a home with a price tag over the $510,400 limit set by Fannie Mae and Freddie Mac. Unlike a conventional mortgage, jumbo loans are more stringent in their requirements for a 20% down payment and adherence to preferred credit score and debt-to-income ratios. Interest rates may sometimes be higher but are often competitive with conventional loans. It should be noted that while the $510,400 limit applies in most U.S. counties, in certain high-cost areas and Alaska and Hawaii, it can be as high as $765,600.

    How should I choose the right jumbo mortgage?

    The right jumbo home loan varies based on your financial situation. If your need for a jumbo loan is based on where you live versus the type of home you are buying, you may prefer the improved cash flow that comes with a 30-year loan. Buyers with ample savings, however, could opt for jumbo fixed rate loans, such as a 15-year fixed rate to pay off the home faster and spend less on interest. Other buyers may find the lower initial interest and costs of a variable rate jumbo loan appealing, while cost-conscious consumers prefer the reliability of a fixed-rate option.

    What are the requirements?

    Jumbo loans fall outside the limits set by the government and come with different requirements than you’d expect from a standard mortgage loan. First of all, the home loan must be for an amount of $510,400 or higher (for most of the country), or $765,600 in more expensive communities where a starter home can cost nearly a million dollars.

    Besides the loan amount requirements, a jumbo mortgage may be more flexible than a conventional loan. You can get a jumbo loan to finance your main home, a second home or vacation property — and even to buy investment properties.

    Jumbo loan qualifications

    Similar to a conventional loan, your eligibility to qualify for a jumbo loan will depend on your income, employment or business ownership status, credit score, debt level, cash reserves and type of property you’re interested in buying.

    While the factors that show lenders you’re financially solvent don’t change, expect your documentation to be reviewed more closely. Lenders providing jumbo loans will expect a higher credit score than if you were applying for a standard mortgage. Most likely, you will also need a larger down payment of 20% or more, which is optional when you apply for a conventional VA or FHA mortgage. Before you apply, ensure you have enough cash reserves and low debt-to-income ratio to show the lender you’re a good risk worth taking.

    How is the process different on a jumbo loan vs. a mortgage?

    The main difference in the two processes is the level of detail a lender will use to analyze your loan application. A jumbo loan comes with stricter financial requirements compared to a conventional loan. Conventional loans are backed by the federal government through home-buying programs for low-income families, first-time homebuyers, low to no down payments, and applicants with low credit.

    You won’t get the same breaks with a jumbo loan. Be prepared to disclose your financials to show your cash reserves, employment and debts. In addition, your credit score will need to be higher — jumbo lenders usually will not negotiate on credit history.

    Methodology

    SimpleScore

    We’ve created the SimpleScore to help you objectively compare products and services here at The Simple Dollar.

    Our editorial team:

    • Identifies five factors to compare across each brand
    • Determines the rating criteria for each factor
    • Calculate an average of those five factor scores to get one SimpleScore

    We break down each of these five factors and their rating criteria for our review of the best mortgage companies.

    Why do some brands have different SimpleScores on different pages?

    Some brands like Bank of America, Wells Fargo, and Chase have different SimpleScores because they offer more than one financial solution — like home loans, auto loans, personal loans and more.

    For instance, in our Bank of America Mortgage Review, we give the company a 3.8 out 5 based on our five rating factors for mortgages. In our Bank of America Auto Loans Review, we give the company a 4.4 out of 5 based on our rating factors for auto loans. By tailoring our SimpleScore to each financial solution, we’re able to give you a more accurate view of a brand’s services and how it compares to competitors’ services.

    Perks

    Mortgage lending companies that provide more perks receive a higher score from us.

    Hard/Soft credit checks

    We know that credit checks affect your score –– that’s why we favor companies that offer soft credit checks or hard credit checks when you want to see your pre-approval rates.

    Customer satisfaction

    We use the J.D. Power 2019 Mortgage Origination Satisfaction Study℠ to find out how customers rate their experience with each company. (If a company is not included in J.D. Power’s study, we skip this rating factor and average the remaining factor scores.)

    Product variety

    Mortgage lenders that offer more products for their home loans are given higher scores.

    Fees

    Fees can add up fast. Companies that don’t require as many fees for your home loan receive a higher score with us.

    Ashley Mott

    Contributor for The Simple Dollar

    Ashley Mott is a full-time journalist with over 10 years of experience in small business management. Her work has been featured in USA Today and at Chron.com, The Knot, Yahoo! Finance and the San Francisco Chronicle.

    Reviewed by

    • Courtney Mihocik
      Courtney Mihocik
      Editor

      Courtney Mihocik is an editor at The Simple Dollar who specializes in insurance, personal finance, and loans. Previously, she wrote and edited for Interest.com, PersonalLoans.org, Ballantyne Magazine, Thread Magazine, The Post, ACRN, The New Political, Columbus Alive and the Institute for International Journalism.