Jumbo Mortgage Rates

About jumbo loans

A jumbo mortgage exceeds the conforming loan limit set annually by the Federal Housing Finance Agency, which means Fannie Mae and Freddie Mac cannot buy it. The lender either keeps it or sells it privately, and prices that risk accordingly.

Underwriting is stricter across the board: higher credit score requirements, larger down payments, lower debt-to-income ceilings and substantial cash reserves after closing.

Rate versus APR

The interest rate sets your monthly payment. The APR folds in points, lender fees and any mortgage insurance, which makes it the right number for comparing two offers. A lower rate paired with higher fees often costs more over the life of the loan.

Frequently asked questions

Are jumbo rates higher than conforming?

Historically yes, though the gap has narrowed and jumbo rates occasionally price below conforming — jumbo borrowers are typically stronger credits, and banks compete hard for the wider relationship.

How much do I need to put down on a jumbo loan?

Commonly 10 to 20 percent, though some lenders go lower for very strong borrowers. Expect to document reserves covering six to twelve months of payments.