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Current jumbo mortgage rates

On Friday, February 03, 2023, the national average 30-year fixed jumbo mortgage APR is 6.33%. The average 15-year fixed jumbo mortgage APR is 5.57%, according to Bankrate's latest survey of the nation's largest mortgage lenders.

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What are current jumbo mortgage rates?

Lenders nationwide provide weekday mortgage rates to our comprehensive national survey to bring you the most current rates available. Here you can see the latest marketplace average rates for a wide variety of purchase loans. The interest rate table below is updated daily to give you the most current purchase rates when choosing a home loan. APRs and rates are based on no existing relationship or automatic payments. For these averages, the customer profile includes a 740 FICO score and a single-family residence. To learn more, see understanding Bankrate rate averages.

Product Interest Rate APR
30-Year Fixed-Rate Jumbo 6.32% 6.33%
15-Year Fixed-Rate Jumbo 5.56% 5.57%
7/1 ARM Jumbo 6.04% 6.24%
5/1 ARM Jumbo 5.50% 7.38%

Rates as of Friday, February 03, 2023 at 6:30 AM

How to get a jumbo mortgage

  1. Make sure you qualify. You must clear three hurdles to qualify for a jumbo loan: a high income requirement, a stellar credit score and hefty reserves. Falling short in one of those categories will make it harder to land the best rate.
    • Regardless of your credit score, you’re at risk of having your application rejected if you have negative items on your credit report, such as missed or late payments, foreclosures and bankruptcies. You may be able to compensate for a lower credit score with a higher down payment.
    • Not only will you need a high income, you’ll need a reasonable debt-to-income ratio to qualify for a jumbo loan. Lenders want to make sure that your debt burden won’t make it difficult for you to pay your mortgage, especially if you fall on hard times.
    • The reserve requirements for a jumbo mortgage are significantly higher compared to conventional mortgages. Lenders will want to see 6-12 months of mortgage payments in the bank, in addition to sufficient funds to cover closing costs.
  2. Gather documentation. Lenders will need proof of your income, credit history, and assets.
  3. Shop around. Because jumbo loans aren’t as readily available as conforming loans, finding the best deal might take a bit more effort. Broaden your search to include brick-and-mortar lenders and mortgage brokers.
  4. Expect a bit of extra scrutiny. Jumbo lenders are taking a big risk, so they might spend a bit more time examining your income, verifying your cash reserves and generally vetting your finances.

Read more: How to get a jumbo mortgage

Why compare jumbo mortgage rates?

When getting a jumbo loan (or really any kind of loan), it’s a good idea to shop around. Bankrate’s wide network of lenders helps you compare offers and score the best rate. 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.

Be sure to check with local financial institutions as well, since sometimes community banks or credit unions can have good rates. It’s also a good idea to work with a mortgage broker who specializes in jumbo loans.

As you solicit quotes from lenders and brokers, 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 before you start shopping around. If you see errors, have them fixed as soon as possible.

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

Pros and cons of a jumbo mortgage

Pros

  • Lower interest rates. In a quirk of the pandemic-era, mortgage market jumbo rates have been trending below conforming loan rates.
  • Flexible terms. Many lenders keep jumbo loans, rather than selling them. That allows for more leeway in the details of the loan – you might need to put down only 10 percent, for instance.
  • Deeper relationships. Banks are big players in the jumbo market, and they offer perks such as private banking status to jumbo borrowers.

Cons

  • Strict underwriting standards. Lenders impose higher guidelines around down payment, credit score, cash reserves and debt-to-income ratio for jumbo loans as opposed to conforming loans.
  • Limited availability. Not all lenders offer jumbo loans: They are a niche product.
  • Conforming loan limits have risen sharply. In high-cost markets, the threshold for a conforming loan is close to $1.1 million, so you might not even need a jumbo loan.

Should you get a jumbo mortgage?

The main upside of jumbo mortgages is that they expand your homeownership options. Large or unique homes, as well as typical homes in pricey areas, regularly have sticker prices well above conforming loan limits. So if you wanted to borrow $1 million against a $1.5 million home in Hawaii, you’d need a jumbo loan. You may even be able to get a competitive interest rate. A jumbo loan might be a good fit for you if you’d rather finance more of a home’s value as opposed to putting down more cash upfront.

That said, jumbo loans have significant downsides. Jumbo loans represent a meaningful credit risk, for one. The higher loan amount will also lead to higher closing costs. Down payment requirements are often higher as well, and due to the large loan amount, you’ll have to put a lot of money down upfront.

FAQs about jumbo loans

Learn more about jumbo mortgages

Written by: Jeff Ostrowski, senior mortgage reporter for Bankrate

Jeff Ostrowski covers mortgages and the housing market. Before joining Bankrate in 2020, he wrote about real estate and the economy for the Palm Beach Post and the South Florida Business Journal.

Read more from Jeff Ostrowski