Today’s 30-year jumbo mortgage rates
The table below brings together a comprehensive national survey of mortgage lenders to help you know what are the most competitive 30-year mortgage rates. This interest rate table is updated daily to give you the most current rates when choosing a 30-year mortgage loan.
Rates as of Tuesday, January 26, 2021 at 6:30 AM
What is a 30-year jumbo mortgage?
If you’re buying an expensive home, you might need a jumbo mortgage. These loans exceed the limits of mortgage giants Freddie Mac and Fannie Mae. For 2020, the cutoff is $510,400 in most parts of the United States. For high-cost areas such as Los Angeles, New York and San Francisco, the limit is up to $765,600. Check loan limits in your county. The federal government adjusts the limit a bit every year.
How does a 30-year jumbo mortgage work?
Rates are similar to standard loans — “conforming” loans, in mortgage lingo — and the payment schedule is the same. But qualifying can be a bit tricky. Jumbo lenders typically have stricter underwriting guidelines. Because jumbo mortgages aren’t backed by Fannie or Freddie, the lender takes on more risk. To land a jumbo loan, borrowers need to demonstrate plenty of income, strong credit scores and hefty reserves.
When should you consider a 30-year jumbo loan?
If you’re buying a luxury property and you have strong income and credit, there’s no real downside to a jumbo loan. The rates are nearly identical to conforming loans. However, the coronavirus recession has caused some jumbo lenders to pull back. If you can’t find a jumbo loan, it might make sense to take a conforming loan for the maximum amount and make up the difference with a larger down payment or with a home equity line of credit.