Compare jumbo refinance 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.

Bankrate has been the authority in personal finance since it was founded in 1976 as the “Bank Rate Monitor,” a print publication for the banking industry. Bankrate has been surveying and collecting mortgage rate information from the nation’s largest lenders for more than 30 years. Hundreds of top publications, such as The New York Times, Wall Street Journal, CNBC and others, depend on Bankrate as a trusted source of financial information, so you know you’re getting information you can trust.

Ally Bank is an online bank and lender offering several banking and loan products, including jumbo loans and 15-year fixed-rate loans. The bank doesn’t offer home loans in every state, so be sure to check availability in your area.

Strengths:

• Preapproval in as little as three minutes and closings up to 10 days faster than industry average
• Transparent interest rates

Weaknesses:

• No FHA, VA or USDA loans
• No home equity lines of credit (HELOCs) or home equity loans
• No branch locations

Read Bankrate's full Ally Bank mortgage review.

Watermark Home Loans is a direct online mortgage lender that has been in business since 2006. The lender is available to borrowers in more than 35 states.

Strengths:

• Free rate watch
• No-closing-cost loans
• Offers programs specifically for military veterans, including waiving the VA funding fee for certain applicants

Weaknesses:

• Rates and requirements aren’t listed online
• Some information online inconsistent with other areas of website

Read Bankrate's full Watermark Home Loans review.

Rocket Mortgage is a leading online mortgage lender in the U.S. The lender offers a broad selection of purchase and refinance options, including a flexible-term product called “YOURgage,” which allows borrowers to set the terms of their loan from eight to 29 years, and cash-out refinancing.

Strengths:

• Low down payment requirement (as little as 3 percent down)
• Customer service regarding new loans available seven days a week via phone or chat

Weaknesses:

• No brick-and-mortar locations
• Doesn't offer USDA loans, HELOCs or home equity loans
• Limited information about lender fees available online

Read Bankrate's full Rocket Mortgage review.

AimLoan.com is a direct mortgage lender that operates in all 50 states.

Strengths:

• Transparent rates on the website
• Available in all 50 states
• Fast initial loan processing

Weaknesses:

• No brick-and-mortar locations

Read Bankrate's AimLoan.com user reviews.

Sage Mortgage is an online mortgage company that both underwrites loans and works with multiple wholesale lenders. (Editor’s note: Sage Mortgage is owned by Bankrate parent company Red Ventures but had no influence in Bankrate's review. Bankrate's editorial team operates independently and has standards in place to ensure the information in this review is accurate and unbiased.)

Strengths:

• Works with multiple wholesalers to offer competitive rates and fast cycle times
• Dedicated loan officer works with borrowers throughout the entire process
• Most mortgages close within 27 days

Weaknesses:

• Doesn’t offer VA loans
• Doesn’t offer home equity loans or HELOCs

Read Bankrate's Sage Mortgage review.

Current jumbo refinance rates are based on a number of factors, including prevailing rates in the market and other macroeconomic influences. The individual rate you can expect to receive also depends on your location, how much equity you have in the home and your personal credit.

When looking at average national jumbo mortgage refinance rates, however, there are some big-picture considerations to keep in mind. Mortgage rates have been trending upward on all loan types since the beginning of 2022, so you’ll really want to crunch the numbers to make sure a refi makes good financial sense at this time.

As you consider whether it makes sense to refinance a jumbo loan, assess your current situation. Compare your current interest rate with the new rate you could receive on the jumbo loan. If the new rate is significantly lower, you might be able to save money each month by refinancing. Doing so can improve your cash flow and potentially result in paying less interest over the life of your loan.

You could also refinance your jumbo loan to take advantage of the equity you’ve built up in your home with a cash-out refinance. Perhaps you’d like to remodel your home or meet some other important financial goal. With a cash-out refinance of your jumbo loan, you could get the money you need at a reasonable rate compared with personal loans or credit cards.

Before you move forward, consider using the Bankrate mortgage refinancing calculator to help you run the numbers. You can see how much you could potentially save, and determine whether it’s the right move for you.

Just as with a jumbo purchase loan, your lender won’t be able to send your refinance to Fannie Mae or Freddie Mac, so that can make it a little more difficult in some cases to get approved. Because a jumbo loan is higher than the conforming loan limits set by Fannie and Freddie, you’ll have to look for lenders willing to extend this type of loan.

Once you find a lender, there’s still more to consider:

• Pay attention to the fees charged by lenders. When refinancing, it’s not just about lower rates. You also need to pay attention to fees and points you might have to pay at closing. In some cases, the cost of refinancing a jumbo loan can be as much as 3 percent to 5 percent of the loan amount.
• What is your break-even timeline? Depending on the term of your new loan — and whether you plan to move in the next few years — the costs involved might actually make refinancing a more expensive financial decision than keeping the status quo with your loan.
• When will you pay your closing costs? Sometimes with a refinance, these charges can be rolled into the balance of your loan. However, that will increase your costs. If you have the cash to pay your closing costs upfront, you can save money and make the most of your refinance.

With the help of a mortgage refinance break-even calculator, you can determine if and when your savings will be large enough to offset the costs involved with a jumbo refinance. You can also discover how long it will take you to break even and then begin benefiting from the refinance. Take this into consideration before you make a final decision about refinancing.

Looking for the best jumbo refinance rates starts with comparison shopping. Bankrate brings you the best jumbo mortgage refinance rates from lenders all across the country. This can provide you with a starting point for determining where you might get the best deal.

You can also check with local financial institutions to see what’s available. If you can show rate quotes from online lenders, you might be able to use them to get a good deal locally. Another route would be to find a mortgage broker who specializes in jumbo loans.

When comparison shopping for jumbo refinance rates, it’s important to be as accurate as possible when you share your information. You’ll need to provide basic information about your income and your credit score. Your final rate depends, in part, on your credit. So, if you don’t know where you stand, you might not receive an accurate rate quote.

Check your credit well before you apply and review your credit report. If there are mistakes, get them fixed before you start comparing rates. It’s also worth noting that, in many cases, multiple credit inquiries related to your jumbo mortgage refinance will be lumped together as one inquiry, as long as they are completed in a relatively short period of time.

>>Read more about Bankrate's best jumbo mortgage lenders

Whether or not you need a jumbo mortgage is determined entirely by the amount of your loan. The thresholds for jumbo loans are set by the Federal Housing Finance Agency and determined by geography. In most areas of the country, mortgages will tip into jumbo loan territory at $$726,200 this year, but that threshold increases to $1,089,300 in higher-cost areas.

>>Read more about jumbo loan limits

Yes. Because jumbo loans can’t be sold to Fannie Mae or Freddie Mac, they’re seen as riskier for lenders, who generally keep these high-value loans on their books for the duration of the mortgage. That means the lender is more likely to lose out if you wind up defaulting on your mortgage, so it charges more in interest to protect their bottom line.

Refinancing a jumbo mortgage is virtually the same as a standard home loan. Here are the key steps:

1. Make sure you qualify and check rates to see if you stand to save.
2. Shop around for quotes. It’s usually not a good idea to settle on the first lender who makes you an offer, and it’s never good to get too hung up on the interest rate. Yes, the rate is important, but you want to look at all the loan terms, including closing costs and other fees, too.
3. Make sure your refinancing will save you enough money to offset your closing costs in a reasonable amount of time. Most experts say one to three years is ideal for breaking even, otherwise it’s not usually worth the hassle.
4. Compile all your financial documents. Be prepared to send a mountain of financial paperwork including bank statements, tax returns, pay stubs and more.
5. Close on your new loan and enjoy the savings.