Review current jumbo mortgage rates for December 1, 2023. Use the table below to compare jumbo mortgage rates and closing costs for lenders near you. Jumbo mortgage rates depend on a number of factors including the loan amount, mortgage program, property type, loan-to-value ratio, borrower credit score and perhaps most important, the lender.
Input your specific criteria, including property value and loan amount, to compare interest rates, fees, APRs and monthly payments for multiple jumbo mortgage lenders. As shown in the table below, a small difference in interest rate can reduce your monthly payment by hundreds of dollars so it is important to contact at least five lenders to find the the best jumbo mortgage terms.
December 1, 2023
There are multiple differences between jumbo loans and regular mortgages that impact your loan terms. Read our pointers below to learn how to find the lowest jumbo mortgage rates and fees.
Larger Loan Amount. Simply put, a jumbo mortgage has a loan amount that exceeds the conforming loan limit for your county. This may seem like an obvious point but it has a pretty significant impact on your mortgage rate and loan terms. Interest rates for jumbo loans used to be higher than for regular mortgages but as lender demand for larger loans increased, jumbo mortgage rates fell.
Shopping for Your Mortgage is More Important. Lenders have more discretion in determining jumbo mortgage rates and closing costs so borrowers see more variation in loan terms. Because interest rates and fees for jumbo mortgages can vary significantly, borrowers should shop lenders to find the mortgage with the most attractive terms. Additionally, because jumbo mortgages have larger loan amounts, even a small difference in interest rate can save you thousands of dollars in interest expense. Regardless of loan amount, we recommend that you compare five quotes before selecting a lender, but shopping for your loan is especially important for jumbo mortgages.
You May Be Required to Make a Larger Down Payment. Depending on the size of the mortgage and other factors including your personal and financial profile, you may be required to make a larger down payment to qualify for a jumbo mortgage. For example, for very large loan amounts you may be required to put down 25% or 30% instead of the standard 20%. Lender loan-to-value (LTV) ratio requirements vary more for jumbo loans than they do for regular mortgages so it is important to understand the down payment requirement before you apply.
Expect Higher Fees But Be Prepared to Negotiate. Because many closing costs are calculated as a percentage of your loan amount or property value, you should expect to pay higher fees with a jumbo mortgage. The good news is that because more lenders are offering jumbo loans, you may be able to negotiate better loan terms, including reduced closing costs. Lenders earn more money in interest over the course of a larger mortgage so they may be more willing to negotiate lower fees or offer discounts to win your business.
Although not always the case, jumbo mortgage rates can be .125% to .500% higher than the interest rate for a conforming loan. This is because in the past lenders have assigned a higher risk to jumbo loans. Currently, jumbo mortgage rates tend to be the same as conforming loan rates but market fluctuations may cause differences. Interest rates for jumbo mortgages vary based on loan amount, loan-to-value (LTV) ratio, credit score and other factors.
Lenders also have more flexibility in setting borrower qualification guidelines for jumbo mortgages. For example, different lenders may have different credit score, debt-to-income ratio and down payment requirements. In addition to shopping for the jumbo mortgage with the lowest rates and fees be sure to understand the lender’s borrower qualification guidelines and underwriting policies.
Technically, any mortgage amount above the conforming loan limit set by the government ($726,200 for a single unit residence in the contiguous U.S. or $1,089,300 for a single unit residence in Alaska or Hawaii) is considered a jumbo mortgage but the government sets higher loan limits in areas with higher housing costs. For example, the loan limit for a single unit residence in a high cost area in the contiguous U.S. can be up to $1,089,300. Loan amounts that fall in between $726,200 and the conforming loan limits for higher cost areas are called conforming jumbo, super conforming or agency jumbo mortgages and may have slightly higher interest rates than conforming loans -- but not always. Loan amounts above the conforming loan limit for a county are called non-conforming jumbo mortgages or jumbo mortgages for short. The important point to note is that loan terms and borrower qualification guidelines are typically different for jumbo mortgages.
Because of the unique eligibility requirements and higher loan amounts associated with jumbo loans, not all lenders offer them. Larger national and regional lenders as well as mortgage brokers are good options for jumbo loans while some local banks and credit unions may not offer them. Although reaching out to different types of lenders takes extra time, shopping for a jumbo mortgage and finding the most attractive loan terms can save you a significant amount of money in the long term.
Many mortgage programs, including most no or low down payment programs including the FHA, VA and HomeReady programs, apply loan limits that cap your mortgage amount. To be eligible for these programs your loan amount usually cannot exceed the conforming, FHA, VA or other loan limit for your county. The loan limits apply to all applicants even if you can qualify for a higher mortgage amount based on your monthly income. This means that most of these programs do not allow jumbo mortgages which limits how much home you can purchase. This can create a significant challenge if you live in a more expensive area and need a jumbo loan to afford to buy a home. Prospective borrowers should always check with their lenders to understand if the loan program they are interested in applies limits and if the program permits jumbo loans.
Comparing jumbo mortgage rates can save you thousands. Use our rate tables to find the lender offering the lowest rates and fees
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We provide a comprehensive overview of jumbo mortgages including borrower eligibility and loan-to-value (LTV) ratio requirement
Use our Conforming Mortgage Limit Calculator to determine the jumbo loan limit for your county. Mortgage amounts above the conforming loan limit are non-conforming jumbo loans
Jumbo mortgages can be more complicated than other mortgages so the FREEandCLEAR Mortgage Expert is standing by to answer your questions. So fire away and receive a helpful response within 24 hours
Use our How Much Home Can I Afford Calculator to determine the what price home you can buy based on your down payment and the mortgage amount you qualify for
"Loan Limits." Originating & Underwriting. Fannie Mae, 2020. Web.