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Jumbo Refinance Rates

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  1. Get prequalified rates in 3 minutes:

    It's quick and painless. Tell us a little bit about you and your home to get accurate prequalified rates without impacting your credit score.

  2. Compare rates from multiple lenders:

    View the interest rate and cost breakdown of each loan to choose the best lender and loan product for you. Need help? Our mortgage team is not commissioned, so they're always on your side.

  3. Upload documents on Credible:

    We take the stress out of refinancing by automating the document collection process, keeping you updated on the status of your application every step of the way.

  4. Finish your loan with us:

    With Credible, you can complete the whole refinance process online. We have a team of dedicated mortgage experts ready to help you if you need it.

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What is a jumbo loan?

jumbo loan is a high-value mortgage that is larger than the conforming limits set by the Federal Housing Finance Administration (FHFA).

The FHFA determines the largest loan that can be sold to Fannie Mae or Freddie Mac. If a loan exceeds those limits, it’s considered a jumbo loan and cannot be purchased by Fannie Mae or Freddie Mac. As a result, it can sometimes be a little more challenging to qualify for a jumbo loan.

When to refinance a jumbo loan

The best time to refinance depends on your situation. Refinancing your jumbo mortgage can get you a lower rate, which can save you money on interest in the long run.

In some cases, it might also make sense to refinance to a longer term. Doing this can lead to a smaller monthly payment, which could result in better monthly cash flow. However, you’ll likely pay more in interest with a longer term. So it’s a good idea to always run the numbers to see if refinancing makes sense for you.

Learn More: How to Refinance a Jumbo Loan

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Shopping for Jumbo Refinance Rates

Once you’ve decided refinancing is in your best interest, and you’ve done what you can to improve your credit score and debt-to-income ratio, you’ll want to shop around for rates.

Start by comparing lenders and seeing what jumbo mortgage refinance rates they offer. Credible makes this easy. You can get actual prequalified rates from all of our partner lenders in just a few minutes — and most importantly, it won’t affect your credit.

When comparing jumbo refinance rates, be sure to also factor in closing costs. In some cases, you might end up paying between 2% to 3% of your loan value when you refinance.

Keep Reading: What Is a Mortgage Rate and How Do They Work?

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Frequently asked questions about jumbo refinance rates

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By Chris Jennings

As a Credible authority on mortgages, Chris Jennings covers topics including home loans and mortgage refinancing. His work has appeared in Fox Business and GOBankingRates.
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The average jumbo refinance rate has hovered around 3% since the beginning of the COVID-19 pandemic, according to historical data from the Federal Reserve Bank of St. Louis.

Recent jumbo refinance rates are higher than the historic lows set in December 2020, when the 30-year fixed rate for jumbo mortgages sat at approximately 2.812%.

The rates can be lower if you’re comfortable with adjustable-rate mortgages, your rate can potentially be less. However, your future rates can adjust higher and offset your initial interest savings.

The following table shows how recent 30-year jumbo mortgage rates compare to previous years. The rate listed is the rate that was recorded on the final day of November in the respective year:

YearInterest rate
20213.200%
20202.914%
20193.894%
20185.008%
20174.187%

While mortgage rates are trending upward, they still remain near historic lows. As a result, now might be a great time to refinance a jumbo loan.

The lowest 30-year fixed jumbo mortgage rate was recorded on Dec. 21, 2020 at 2.812%, according to the Federal Reserve Bank of St. Louis.

The best refinance rate — regardless of whether it’s a jumbo loan or not — is one where you can lower your interest rate by at least one percentage point. This allows you to break even on your closing costs in a reasonable period of time and provides enough monthly savings to make the whole process worth it.

Recent rates are at least a full percentage point lower than the highs of just over 5% in October 2018. So, if you took out a jumbo loan around then, now would be a good time to refinance.

As jumbo refinance rates trend higher, it’s vital to compare rates from multiple lenders to ensure you’re getting the best possible rate. You can quickly compare personalized rates, monthly payments, and fees on jumbo refinance loans with Credible in just a few minutes. Checking your refinance rates and terms with us is free and won’t affect your credit score.

Several economic and personal factors influence your mortgage rates. The 10-year Treasury bond yield is one of the most significant variables as rising yields tend to indicate higher refinance rates.

Typically, rates are lower when the economy is weakening, unemployment is rising, and mortgage demand is declining. However, rates can rise due to strengthening economic conditions or an uptick in inflation.

You can take several steps to qualify for a lower jumbo refinance rate:

  • Credit score: Lenders usually require you to have an excellent credit score — 740 or higher in most cases — to be eligible for the best rates. You can still qualify for a competitive rate if your score is in the upper 600s to lower 700s. Find out ways to improve your credit score before applying.

  • Cash reserves: With jumbo loans in particular, lenders want to see you have good cash reserves. You should disclose your available savings and non-liquid assets so that your lender can determine if you have enough money to refinance.

  • Debt-to-income ratio (DTI): Your lender may only allow a maximum DTI ratio of 43% for a jumbo refinance. As you’re borrowing more money than a conforming loan, your income will also need to be higher.

  • Repayment term: Loans with shorter repayment terms generally have a lower interest rate but your monthly payment will be larger.

  • Closing costs: Paying your origination fees and closing costs upfront instead of rolling them into your loan can lower your lifetime interest costs. Your loan estimate will list all of your closing costs so that you can decide if it’s worth buying points or rolling some of the costs into the loan.

  • Home equity: Your lender may require a loan-to-value ratio (LTV) of 80% or less before you qualify for refinance. It’s possible to get a cash-out refinance and remain below the 80% LTV ratio, but your loan APR might be higher.

Jumbo loan rates are typically higher than mortgage refinance rates that meet the FHFA conforming loan limits. The following table shows what the APR might look like on a jumbo loan vs. a conforming loan.

Repayment termAPR
30-year fixed-rate jumbo3.403%
15-year fixed-rate jumbo3.046%
30-year fixed3.118%
20-year fixed2.841%
15-year fixed2.497%
10-year fixed2.395%

In addition to looking for the lowest interest rate, you should also compare your monthly payments. You may want to choose the highest payment that you can comfortably afford to minimize your lifetime interest costs.

However, it’s also important to weigh your other financial priorities. Refinancing to get a lower rate and monthly payment but keeping the same repayment term can be sufficient if you simply want to free up more cash for other expenses.

Here are some of the advantages of refinancing a jumbo loan:

  • Reduced interest rates: You can potentially qualify for a lower interest rate that can immediately reduce your monthly payment.

  • Fixed monthly payment: By refinancing an adjustable-rate loan to a fixed interest rate, you can secure the same interest rate and monthly payment for the entire repayment period.

  • New repayment term: You can either shorten or extend your repayment period to fit your financial situation. A shorter term minimizes your lifetime interest costs.

  • High borrowing amounts: Jumbo mortgages allow you to finance a more expensive property if you live in a high-cost area.

There are also several disadvantages to be aware of, including:

  • Higher interest rates: Refinance rates on jumbo loans tend to be higher than rates on conforming loans due to the additional risk posed to the lender.

  • Closing fees: You’ll pay a variety of origination fees and appraisal costs, just like you did on your first mortgage. These fees are usually between 2% and 5% of the loan amount.

  • Stricter requirements: It’s harder to qualify for jumbo loans than conforming loans as lenders often have more restrictions. You may need a higher income, deeper cash reserves, and a lower DTI ratio, for instance.

  • Cash-out restrictions: Your lender might impose limits on the amount of money you can take out with a jumbo cash-out refinance. The interest rates on these types of refinance loans might also be higher.

Jumbo refinance rates, like traditional refinance rates, will be different for each repayment term. In general, the shorter your term, the lower your rate.

Besides a different refinance rate, your repayment period will also determine your new monthly payment amount and total interest costs. While longer terms generate more interest, your monthly payment is smaller. Thirty-year mortgages are the most popular home loan option primarily because they offer these budget-friendly payments.

Here are the costs for two hypothetical jumbo loans — both valued at $700,000. You can see how much you’ll save in interest by opting for the shorter term.

Repayment term15-year jumbo fixed-rate30-year jumbo fixed-rate
APR2.973%3.169%
Monthly payment$4,824.99$3,015.41
Total interest costs$168,497.58$385,548.22
Potential interest savings$217,050.64N/A

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