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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.
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.
|30-Year Fixed Rate||2.900%||3.200%|
|30-Year FHA Rate||2.700%||3.580%|
|30-Year VA Rate||3.110%||3.410%|
|30-Year Jumbo Rate||2.950%||3.060%|
|20-Year Fixed Rate||2.810%||3.120%|
|15-Year Fixed Rate||2.390%||2.730%|
|15-Year Fixed Jumbo Rate||2.420%||2.490%|
|5/1 ARM Rate||2.900%||3.980%|
|7/1 ARM Rate||2.850%||3.890%|
|7/1 ARM Jumbo Rate||2.920%||3.870%|
|10/1 ARM Rate||3.110%||3.950%|
Rates data as of 1/13/2021
Best jumbo loan mortgages lenders of 2021
- Wells Fargo: Best 15-year rates
- Bank of America: Best for existing customers
- US Bank: Best for credit over 740
- Ally: Best online bank
- USAA: Best for military members
- Citizens Bank: Best for cashback rewards
Compare current mortgage rates by lender
|Bank||Loan Types Offered||APR|
|Wells Fargo||30-year fixed|
|Bank of America||30-year fixed|
|U.S. Bank||30-year fixed|
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.