Jumbo Loan Rates

During the homebuying process, there’s a chance that the right home for you might come with a price tag that’s bigger than normal, that is, above the limits set by the funding criteria of Fannie Mae and Freddie Mac.

In these situations, a jumbo loan will be the ticket to the financing you need. As you shop around, you’ll want to keep an eye on the best jumbo mortgage rates to ensure that you’re getting the best possible deal.

What are jumbo mortgage rates?

The table below brings together a comprehensive national survey of mortgage lenders to help you know what are the most competitive jumbo loan rates. This interest rate table is updated daily to give you the most current rates when choosing an jumbo mortgage home loan.

Product Interest Rate APR
30-Year Fixed Rate 3.820% 3.950%
20-Year Fixed Rate 3.870% 4.000%
15-Year Fixed Rate 3.260% 3.410%
10/1 ARM Rate 3.780% 3.900%
7/1 ARM Rate 3.560% 3.860%
5/1 ARM Rate 3.360% 3.860%
30-Year VA Rate 3.420% 3.510%
30-Year FHA Rate 3.310% 3.760%
30-Year Fixed Jumbo Rate 3.970% 3.990%
15-Year Fixed Jumbo Rate 3.440% 3.450%
7/1 ARM Jumbo Rate 3.480% 3.810%
5/1 ARM Jumbo Rate 3.200% 3.640%

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What is a jumbo loan?

A jumbo loan is one that exceeds the limits for conforming loans set by the Federal Housing Finance Agency (FHFA). These conforming loans are those that can be serviced by Fannie Mae and Freddie Mac. Because a jumbo loan exceeds these limits, it is also called a non-conforming loan.

When you get a jumbo mortgage, your lender can’t rely on federally-backed insurance from Freddie and Fannie to reduce some of their risks. Many of the home loan programs provided by the government operate under the principle that lenders will be able to recoup some of their losses if a borrower defaults. At the very least, lenders know they can sell their loans to these government-sponsored enterprises, in part, to promote liquidity in the home loan market.

Jumbo loan requirements

Each year, the FHFA reviews home prices and the market and determines what the conforming loan limit will be. The limit is set based on home price increases, as well as where the homes are located, usually by county. Any mortgage above the conforming loan amount is considered a non-conforming loan — a jumbo loan. For 2020, the new upper limit for most conforming loans is $510,400. However, there are some areas of the country that have a higher conforming loan limit of differing amounts up to $765,600.

You can find the non-conforming loan limits for every state and county here.

Before you apply for a high-dollar mortgage, it makes sense to find out if you live in one of those high-cost areas because that can make a difference. The FHFA offers an interactive map of all the counties in the United States, along with the conforming limits in those counties. If your mortgage exceeds the conforming loan limit, it’s a jumbo loan, and you’ll need to take that into account as you move forward.

Jumbo loan qualifications

While there is no jumbo loan limit set by regulation, the reality is that you’ll have to meet certain qualifications to get a non-conforming loan.

When lenders make conforming mortgages, they know that they can sell the loans to Fannie and Freddie and offload some of the risks. However, with a non-conforming loan, that option isn’t available, so jumbo mortgage lenders often require a little more from borrowers. This can include such qualifications as:

  • A higher credit score than might be required for a conforming loan
  • 20 percent minimum down payment
  • Better debt-to-income ratio

How is the mortgage process different with a jumbo loan?

To get a high-priced loan, you might need to jump through more hoops and save up for a bigger down payment. In many cases, with a conforming loan, you don’t need a 20 percent down payment, and if you qualify for an FHA loan, you might be able to get approved even with a credit score as low as 500.

You likely won’t get a jumbo loan with a score that low or a small down payment.

Additionally, you might need to go through a more rigorous vetting process for your income and assets with a jumbo mortgage. Depending on the lender requirements, it might take longer to close on a non-conforming loan than it would to close on a conforming loan.

What are current jumbo mortgage rates?

Current jumbo mortgage rates depend on a number of factors, including the market and where you’re located. Economic conditions can impact mortgage rates, along with the terms of the loan. A longer-term mortgage is likely to have a different rate than a loan with a shorter term.

Bankrate’s forecast for the first quarter of 2020 suggests that mortgage rates in general are likely to remain relatively low — and this includes jumbo loan rates. When shopping around, check rates in your area, and then realize that you’ll likely only get access to the best rates if you have a strong credit history and a sizable down payment.

Shopping around for the best jumbo mortgage rates

When getting a jumbo loan, it’s a good idea to shop around. Bankrate is a good starting point. Because a non-conforming loan is usually for such a large amount, getting the best rate can make a big difference in the amount of interest that you pay.

Check with local financial institutions as well, since sometimes community banks or credit unions can have good rates — and they might be more willing to work with you because you’re both members of the same community. Another source is mortgage brokers who specialize in jumbo loans.

As you compare jumbo loan rates, make sure you provide information that’s as accurate as possible. Because your credit score is going to be a big determinant of your rate, review your credit report. If you see errors, have them fixed before you start looking for a home.

Be prepared to answer questions about your liquid and non-liquid assets, as well as how much you can make for a down payment. You should also have an accurate idea of your income and your debt levels so you can let potential lenders know your debt-to-income ratio. The more accurate your information, the more accurate your mortgage rate quote will be.

Bottom line

If you plan to buy a home and need a loan that exceeds the conforming limit set by the FHFA, you need to understand jumbo loans. You’ll probably have a more involved and complicated process to go through to fund your home. However, if you move forward with the right lender, there’s a good chance that you’ll be able to get the home of your dreams — even if you use a non-conforming loan.

Learn more about specific loan type rates
Loan Type Purchase Rates Refinance Rates
The table above links out to loan-specific content to help you learn more about rates by loan type.
30-Year Loan 30-Year Mortgage Rates 30-Year Refinance Rates
20-Year Loan 20-Year Mortgage Rates 20-Year Refinance Rates
15-Year Loan 15-Year Mortgage Rates 15-Year Refinance Rates
10-Year Loan 10-Year Mortgage Rates 10-Year Refinance Rates
FHA Loan FHA Mortgage Rates FHA Refinance Rates
VA Loan VA Mortgage Rates VA Refinance Rates
ARM Loan ARM Mortgage Rates ARM Refinance Rates
Jumbo Loan Jumbo Mortgage Rates Jumbo Refinance Rates

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