Compare Jumbo Refinance Rates

What are current jumbo refinance rates?

Current jumbo refinance rates are based on a number of factors, including prevailing rates in the market and other macroeconomic factors. 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 items to keep in mind. In general, national mortgage rates are expected to remain relatively low, according to Bankrate’s forecast for the first quarter of 2020. Jumbo refinance rates are likely to follow the same pattern, with homeowners looking to refinance potentially able to find good deals and lower their rates.

When should you refinance a jumbo loan?

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. This can improve your cash flow as well as potentially result in paying less interest over the life of your loan.

Another reason to refinance your jumbo loan might be 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 a 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.

What to consider before refinancing a jumbo loan

It’s important to realize that, 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.

Additionally, pay attention to the fees charged by lenders. When refinancing, it’s not just about lower jumbo mortgage refinance 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.

Depending on how long you refinance your mortgage for, and whether you plan to move in the next few years, the costs involved might actually make refinancing a poor financial decision.

Don’t forget to find out if you need to bring extra money to the table. Sometimes, with a refinance, your closing costs can be rolled into in the final 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.

How do I find the best jumbo refinance rate?

Looking for the best jumbo refinance rates starts with comparison shopping. Bankrate offers 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.

Bottom line

In many ways, a jumbo mortgage refinance is similar to a conventional refinance. However, because a jumbo loan isn’t the same thing as a conventional mortgage, there are a few things you do need to keep in mind. You might need to look for a lender that specializes in jumbo mortgage loans, and you might need to accept that some jumbo refinance rates are slightly higher than what you’d see with conventional loans.

Prepare ahead of time by shopping around so that you can find the best jumbo mortgage refinance rates and make sure that you meet the requirements for a refinance. If you’re ready for the next step, and if you take the time to compare rates, you’re more likely to save money and improve your cash flow when you decide to refinance.