Best Jumbo Rates Today

Find out what a jumbo mortgage costs today

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If you want to buy an expensive home, you’ll likely need a jumbo mortgage, which essentially is a large home loan. Jumbo mortgages exceed the conforming loan limits set by Fannie Mae and Freddie Mac, which purchase most conventional mortgages.

For 2022, the conforming loan limit is $647,200 in most areas but can go as high as $970,800 for places deemed to be high-cost counties. Conforming loan limits vary by location, and any home loan over the limit in your area would be considered a jumbo loan.

Because jumbo loans have more stringent requirements than other loan programs, jumbo mortgage rates are on par and sometimes lower than conventional mortgages.

Learn more about how jumbo mortgages work, the benefits these types of loans offer, and how to qualify for the best jumbo mortgage rates.

Today’s Best Jumbo Mortgage Rates

Loan Type Purchase Refinance
Jumbo 30-Year Fixed 5.90% 5.90%
Jumbo 15-Year Fixed 5.90% 5.90%
Jumbo 7/6 ARM 5.60% 5.69%
Jumbo 5/6 ARM 5.69% 5.69%
Rates are based on an analysis of 200 lenders and are subject to change.

Frequently Asked Questions (FAQs)

What is a jumbo mortgage?

A jumbo mortgage is any mortgage that is for an amount higher than your area’s conforming limit. Conforming loan limits matter because they are used to determine which loans are eligible to be purchased by Fannie Mae and Freddie Mac.

When you apply for a jumbo loan, the process is the same as any other mortgage. The loan goes through an underwriting process in which the lender looks at your credit score, debt-to-income ratio, and other financial factors. The key difference is that with a jumbo loan, lenders have stricter requirements because the amount you’re borrowing is much higher. For example, applicants might have to meet additional eligibility criteria, such as having larger cash reserves or providing extra documentation.

Jumbo mortgage borrowers also usually have higher closing costs, and you might have to make a larger down payment than is required with some other types of home loans. There are different term lengths available on jumbo loans, with 30-year mortgages being the most common. They have either fixed or adjustable rates.

Who should consider a jumbo mortgage?

If you’re looking to purchase an expensive home, you may need a jumbo mortgage to borrow more than the conforming loan limits allow. Jumbo mortgages aren’t accessible to everyone who wants to buy a luxury home, however. Borrowers must be able to demonstrate that they have strong credit and ample income and assets to afford the monthly payment.

Because lenders are taking on more risk, jumbo loans typically have higher qualification standards than conforming loans. Qualifications may vary by lender, but you expect a higher credit score requirement than you’d need for a conventional or government-backed loan.

What are the benefits of a jumbo mortgage?

One major benefit of jumbo mortgages is that you have a financing option without having to limit your home search by price. This can be especially advantageous in areas where home prices run high.

In addition, because you have to meet tougher standards, jumbo mortgage rates tend to be comparable to and sometimes even lower than conforming loans.

Finally, with jumbo mortgages, you may not be required to pay private mortgage insurance (PMI), which protects your lender if you default on the loan. PMI is not required on conventional mortgages if you make a down payment of 20% or if you have more than 20% equity. And some lenders don’t require PMI for jumbo mortgages even if the lender has lower down payment standards.

How big of a down payment is required with a jumbo mortgage?

Jumbo loans usually require higher down payments than other types of home loans. For example, while some conventional loans might require 3% down, a jumbo loan lender typically requires 20%. In some cases, you can see lower down payment requirements for jumbo loans, such as 10%.

VA-backed home loans have no limits on the amount you can borrow, as long as you meet income and credit history requirements, and they don’t require a down payment.

What is a conforming mortgage?

If a mortgage is conforming, it means that it is within the loan limits and meets other criteria set by Fannie Mae, Freddie Mac, and their regulator, the Federal Housing Finance Agency (FHFA). Fannie and Freddie purchase conforming loans from lenders.

In general, if a mortgage amount is less than the loan limits, it is considered a conforming loan. Loans above that limit are jumbo mortgages.

Why are jumbo mortgage rates lower than conventional mortgage rates?

Jumbo mortgage rates are competitive and can even be lower than some conforming mortgage rates. However, your personal financial situation will ultimately determine the jumbo mortgage rates you qualify for. Shop around and compare different loan options, because rates can vary by lender.

How do you get the best jumbo mortgage rates?

Qualifying for the best jumbo mortgage rates—or any loan rates, for that matter—depends heavily on your financial health. The main factors the lender will consider include:

  • Credit score: A higher credit score demonstrates a more responsible credit user, so lenders will offer you lower rates.
  • Debt-to-income ratio: The lower your debt-to-income ratio (DTI), the more confident the lender will feel that you have the ability to make your loan payments.
  • Down payment: The more you put down, the more equity you will have in the home. Putting down a large amount of cash often leads to lower rates.

Once you’re confident in your financial standing, try to get quotes from a few lenders to ensure you’re getting the best possible jumbo mortgage rates for your current situation.

How We Found the Best Jumbo Rates

To curate this list of the best jumbo mortgage rates, we created a borrower profile. We performed a search based on this person having a credit score of 700-760, with the property having a loan-to-value ratio (LTV) of 80% (since a 20% down payment is often required for jumbo loans).

Next, we looked at the lowest rates available from more than 200 of the nation’s top lenders to mimic the results an actual consumer would get when shopping for a jumbo mortgage.

Keep in mind that mortgage rates can change frequently, and this data is for informational purposes only. Your own personal credit and income profile will determine the interest rates available to you. Loan rates do not include additional taxes or insurance premiums, and lender terms vary.

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Sources
The Balance uses only high-quality sources, including peer-reviewed studies, to support the facts within our articles. Read our editorial process to learn more about how we fact-check and keep our content accurate, reliable, and trustworthy.
  1. Federal Housing Finance Agency. “FHFA Announces Conforming Loan Limits for 2022.”

  2. Consumer Financial Protection Bureau. “What Is a Jumbo Loan?

  3. Wells Fargo. “Compare Current Mortgage Interest Rates.”

  4. CFPB. “What Is Private Mortgage Insurance?

  5. RocketMortgage. “Homeownership Through a Jumbo Smart Loan.”

  6. U.S. Department of Veterans Affairs. “VA Home Loan Limits.”

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