Current Jumbo Mortgage Rates

fact checked icon

Updated: October 9, 2024

Advertising & Editorial Disclosure

A mortgage is called a jumbo loan when it exceeds $766,550, the conforming loan limits for most states in 2024, as set by the Federal Housing Finance Agency (FHFA). This makes it ideal for those purchasing high-value properties. Many opt for jumbo loans to finance luxury homes or properties in competitive real estate markets.

Jumbo mortgage rates fluctuate daily, so staying informed about current figures can help you secure favorable terms. Understanding these rates allows you to optimize your mortgage strategy and plan your finances appropriately.

Key Takeaways

blueCheck icon

Today's average APR for a 30-year fixed-rate jumbo loan is 7.04%. Factors affecting your rate include credit score, DTI and loan purpose.

blueCheck icon

A jumbo loan is a solid financing option for high-value properties, but you might have higher mortgage interest rates than conforming loans.

blueCheck icon

To secure better rates, improve your credit score, increase your down payment and maintain substantial financial reserves.

Current Jumbo Mortgage Rates

Current 30-year jumbo mortgage rates stand at 7.04%. However, shorter repayment terms often offer lower rates. For example, a 15-year fixed-rate jumbo loan currently has a 6.88% APR. Understanding these differences can help you choose the best option. Below is a table detailing the current jumbo mortgage rates.

15-Year Fixed Rate Jumbo6.80%6.88%
30-Year Fixed Rate Jumbo6.97%7.04%
5-year ARM Jumbo6.97%7.76%
7-year ARM Jumbo7.01%7.62%

Where does this data come from?

mglogo icon
SHOULD YOU FOCUS ON INTEREST RATE OR APR?

When evaluating jumbo loans, consider both APR vs. interest rate. Nationally, the interest rate for a 30-year fixed-rate jumbo mortgage is 6.97%, while the APR is 7.04%. While the interest rate shows the cost of borrowing, the APR includes fees, providing a more comprehensive view of your loan's cost. Focusing on APR offers a clearer picture of the total expense.

Current Jumbo Mortgage Rates by Purpose

Jumbo mortgage rates vary by repayment terms, location and loan purpose. For instance, a 30-year fixed-rate jumbo loan in Florida has an APR of 7.07%, while jumbo mortgage refinance rates are 7.16%. Use the interactive table below to explore rates based on your state and loan purpose.

Data filtered by:Results filtered by:
Select
State:Alabama
Select
Loan Purpose:Purchase
15-Year Fixed Rate Jumbo6.65%
30-Year Fixed Rate Jumbo6.73%
5-year ARM Jumbo7.53%
7-year ARM Jumbo7.48%

Factors Affecting Jumbo Loan Rates

Here are some factors influencing current jumbo mortgage rates. Understanding them can help manage your expectations for the rates you may qualify for.

    excellentCredit icon

    Financial Profile

    Lenders evaluate your credit score, debt-to-income ratio and financial history, including employment and income stability. Having a strong profile can reduce perceived risk, leading to lower jumbo loan rates.

    inflation icon

    Inflation

    Higher inflation tends to result in higher interest rates, including those for jumbo loans. When inflation rises, the dollar's value decreases and lenders often increase rates to compensate for this loss in purchasing power.

    supplyAndDemand icon

    Market Demand

    The higher the demand for mortgages, the more lenders tend to raise their rates. Conversely, when fewer people are seeking loans, lenders may lower rates to attract borrowers.

    congress icon

    Government Policies

    Government actions, such as changes in the federal funds rate set by the Federal Reserve, can influence jumbo loan rates. When the Fed raises rates, lenders often follow suit.

How to Get the Best Jumbo Mortgage Rates

Even minor rate differences can significantly impact your total loan cost, so it’s best to secure the best jumbo mortgage rates possible.

Competitive rates can save you thousands over the loan’s life. Factors like a high credit score and a substantial down payment can help you qualify for lower APRs. Explore these tips to optimize your rate.

  1. 1

    Improve Your Financial Profile

    Enhancing your credit score and reducing your debt-to-income ratio can significantly impact your eligibility for lower rates. For instance, a score above 760 and a DTI below 36% might qualify you for better jumbo mortgage rates.

  2. 2

    Increase Your Down Payment

    Offering a larger down payment, such as 20% or more, reduces the lender’s risk, potentially resulting in more competitive rates. For example, a $200,000 down payment on a $1 million home can improve your loan terms.

  3. 3

    Maintain Higher Financial Reserves

    Lenders often require six to twelve months of reserves for jumbo mortgages, with some needing even more. Demonstrating substantial reserves, such as these, can reassure lenders of your ability to repay, potentially resulting in lower rates. For example, having $100,000 in reserves can make you a more attractive borrower.

  4. 4

    Lock in Your Rate

    Securing a rate lock can protect you from market fluctuations during the loan process. For example, if rates are rising, locking in at 6.85% ensures you don’t end up with a higher rate at closing.

  5. 5

    Opt for Automatic Payments

    Enrolling in automatic payments can lead to rate discounts from some lenders. For instance, setting up auto-pay might reduce your rate by 0.25%, lowering your overall loan cost.

  6. 6

    Explore Discount Points

    Paying for discount points upfront can reduce your interest rate. For example, paying $5,000 in points could lower your rate from 7.07% to 6.82%, saving you money over the loan’s term.

vs icon
COMPARING MORTGAGE RATES: JUMBO VS. CONFORMING LOANS

When comparing jumbo and conforming loan mortgage rates, lenders typically charge higher rates for jumbo loans due to the increased risk associated with larger loan amounts. However, this isn’t always the case, as some jumbo loans may offer competitive rates. It’s essential to compare both options to find the most favorable terms for your financial situation.

Pros and Cons of Getting a Jumbo Mortgage

mglogo icon
READ MORE ON MORTGAGES

Jumbo loans offer several benefits but also come with drawbacks that are important to consider. Weighing the pros and cons will assist you in determining whether this loan type aligns with your financial goals and capabilities.

Pros
Cons

Access to Higher Loan Amounts: Jumbo loans enable borrowing above the conventional loan limit, allowing you to purchase higher-priced properties.

Stricter Qualification Criteria: The eligibility criteria for jumbo loans can be stricter due to the larger loan amount, such as a higher credit score and lower DTI ratio.

Luxury Home Financing: These loans are often an ideal choice for luxury homebuyers, allowing them to finance properties in pricier housing markets.

Larger Down Payment: Jumbo loans often require a heftier down payment, potentially stretching personal finances.

Allow for a Single Loan: With higher loan limits, you can borrow the necessary amount to fund a high-end property under one mortgage instead of taking out multiple loans.

Higher Closing Costs: Due to the larger loan amount, closing costs on jumbo loans can be higher than conventional loans.

Flexible Borrowing Options: Jumbo loans can come with different terms and types, offering flexibility to suit your financial situation.

Limited Availability: Not all lenders offer jumbo loans, limiting your choices.

Tax Benefits: The interest paid on jumbo loans can often be tax-deductible, offering a potential tax advantage.

Market Volatility Impact: Changes in economic conditions can significantly impact jumbo loan rates, leading to potential financial uncertainty.

Jumbo Loan Mortgage Lenders

Choosing the right jumbo mortgage lender is important, as it can significantly impact your mortgage rate and overall experience. The right lender offers competitive rates and tailored services, enhancing your jumbo mortgage journey.

Here are some lenders that offer jumbo loans:

Lender
Availability
Online Application
BBB Rating

Bank of America

Online and In-Person

Yes

A

Better

Online Only

Yes

B+

First Midwest Bank

Online and In-Person

Yes

A+

Lower

Online Only

Yes

A+

Truist

Online and In-Person

Yes

A+

Not all jumbo mortgage lenders disclose their rates online, and many have unique requirements. It’s best to contact lenders directly to obtain specific details and ensure you meet their criteria for the most accurate rate information.

When you’re talking to your lender, maximize your conversation. Ask the following questions to compare them effectively:

  1. 1

    How much can I borrow?

    Ensure the lender’s upper jumbo limit meets your needs for purchasing your desired home.

  2. 2

    What rate can you offer me?

    Provide your financial details and consent to a credit check for a tailored rate quote.

  3. 3

    Can you offer a better rate?

    Use competing offers to negotiate — one lender may match or beat the lowest rate, saving you money.

Frequently Asked Questions About Current Jumbo Mortgage Rates

Our FAQ section provides insights into current jumbo mortgage rates, helping you understand how they’re determined and what factors influence them.

What is a jumbo mortgage?

What is a good jumbo mortgage rate?

How are jumbo mortgage rates set?

How can I qualify for the best jumbo mortgage rates?

What factors affect jumbo mortgage rates?

Are jumbo mortgage rates fixed or adjustable?

Can you negotiate jumbo mortgage rates with lenders?

About Zachary Romeo, CBCA

Zachary Romeo, CBCA headshot

Zachary Romeo is a certified Commercial Banking and Credit Analyst (CBCA), and the Head of Loans and Banking at MoneyGeek. Previously, he led production teams for some of the largest online informational resources in higher education, with over 13 years of experience in editorial production.

Romeo has a bachelor's degree in biological engineering from Cornell University. He geeks out on minimizing personal debt and helping others do the same through people-first content.

Read Full Bio »
sources
Insurance
Mortgage
Credit Cards
Loans
About MoneyGeekPressPrivacy PolicySitemap
Copyright © 2024 MoneyGeek.com. All Rights Reserved Terms of Use