Compare Current Jumbo Mortgage Rates

U.S. News Expert Insights, Week Ending July 15

Mortgage Rates Surge to Yearly Highs

“The average 30-year fixed mortgage rate is now hovering around 6.75%, compelling summer homebuyers to recalculate their purchase budgets. With mortgage rates now at their highest levels in about a year, and geopolitical uncertainty bleeding into the economy, prospective buyers may not feel motivated to jump into the market.

“New data substantiates this sense of unease as higher borrowing costs weigh on the housing sector. Mortgage applications have waned in recent weeks alongside rising rates, according to the Mortgage Bankers Association. Pending home sales decreased by 5.4% in June, per the National Association of Realtors.

“Today’s high mortgage rates are a result of the resurgence of the U.S. war in Iran. The Middle East conflict has led to higher oil prices, fueling inflation throughout the economy. Mortgage interest rates, which follow 10-year Treasury yields, are highly sensitive to price changes. The bottom line: mortgage rates will stay high due to the inflationary pressures of the war.”

– Erika Giovanetti, U.S. News Consumer Lending Analyst

A jumbo mortgage is a home loan that exceeds the maximum loan amount set by the Federal Housing Finance Agency. The FHFA oversees Fannie Mae and Freddie Mac, which buy and sell conforming home loans that meet FHFA guidelines. These loans sold by Fannie Mae and Freddie Mac are called conforming loans. Jumbo mortgages don’t meet these guidelines and are called nonconforming loans.

“Jumbo mortgages don’t get sold to Fannie or Freddie,” says Melissa Cohn, regional vice president of William Raveis Mortgage. “Many of them are portfolio loans, meaning banks keep them on their balance sheets.”

So to reduce risk, lenders set higher qualification standards on jumbo mortgages. You’ll generally need a higher credit score, a larger down payment and a lower debt-to-income ratio to get a jumbo loan.

Conventional loans are mortgages that aren’t backed by government agencies like the Federal Housing Administration, Department of Veterans Affairs or Department of Agriculture. Conventional mortgages can be divided into two types: conforming and nonconforming.

Conforming home loans meet, or conform, to guidelines set by Fannie Mae and Freddie Mac.

Nonconforming home loans don’t meet those guidelines. Jumbo mortgages are conventional mortgages. And they are also nonconforming loans because their amounts exceed the limits for conforming mortgages.

In 2026, a conforming loan for a single-family property is any mortgage that doesn’t exceed $832,750. In some high-cost areas, conforming loans can go up to $1,249,125 for a single-family residence. Loans that exceed these limits are considered jumbo, and each lender sets its own ceiling. Some may offer jumbo loans up to $2 million or $3 million, while others go as high as $5 million or more.

Jumbo mortgage underwriting tends to be stricter than conforming underwriting. However, lenders that keep their loans in-house can offer more flexibility than conforming lenders, which must adhere to strict guidelines so their loans can be bundled into securities and sold to investors.

The best mortgage for you depends on your qualifications and the amount you need to borrow.

It’s generally more difficult to qualify for a jumbo mortgage than a conforming or government-backed home loan. Larger loan amounts mean bigger losses if a borrower defaults, so lenders tend to raise the bar when setting their guidelines.

Jumbo loans can be used for single-family homes as well as multiunit properties, like duplexes. That said, for a multiunit property, you may need a higher credit score and a larger down payment.

Understand that jumbo mortgage lender guidelines, rates and terms vary much more widely than conforming or government loans. If you don’t qualify with one lender, another may be happy to have your business. It’s important to shop with multiple lenders for the right loan at a competitive rate.

Jumbo loan interest rates are usually higher than rates on conforming loans, but they can dip below conforming rates on occasion. They vary at every financial institution.

To set jumbo loan rates, a lender first looks at the cost of funds, which is the interest rate it pays when it borrows from another bank. Then the lender adds its own margin to the cost of funds.

“When you add the cost of funds to the margin, that will give you your jumbo mortgage rate,” says Ray Rodriguez, a regional mortgage sales manager with TD Bank. “Rates vary because each bank could have a different risk appetite and profitability model. It all depends on the individual lender.”

Fixed jumbo loan terms can vary between 10 and 30 years. Some lenders offer other options, such as adjustable-rate mortgages, or ARMs. A 5/1 ARM, for instance, starts with a low interest rate that’s fixed for the first five years. During this time, “the mortgage walks, talks, acts and feels like a 30-year fixed rate loan,” Cohn says.

After the fixed period ends, the rate can change at set intervals for the remaining loan term. Cohn says borrowers often choose ARMs when market rates are high. They’ll typically refinance to a fixed rate later on, which provides predictable payments.

To calculate your jumbo loan interest rate, contact a lender and ask for a quote. You’ll need to supply details about your credit, income, outstanding debts, estimated loan size and down payment. The lender can provide a rate quote and estimate your loan costs.

You can also use an mortgage calculator to estimate different scenarios and determine what kind of loan fits into your budget.

Comparing loan rates is one of the best ways to lower your costs when buying a home. “Rates with jumbo mortgages can vary broadly from bank to bank,” Cohn says, because lenders have more wiggle room to set loan terms.

Even a small rate difference can provide significant savings, especially on a high-dollar loan. Let’s say you take out a 30-year fixed-rate jumbo mortgage for $1 million and put down 20%. You’d pay $134 less per month with a 6.75% interest rate than with a 7% rate. And over the life of the loan, you’d save more than $48,000.

To compare rates, start by contacting multiple banks and credit unions, and ask these questions:

A jumbo loan could be a good choice if you’re buying a high-value home and the larger monthly payments won’t strain your finances. First, check the conforming loan limits for the county where you plan to buy. Loan limits vary by county and the number of units in the property.

To borrow more than the conforming loan limit, you’ll need to take out a jumbo mortgage or combine a conforming first mortgage with a “piggyback” second mortgage. If you’re looking to finance just slightly more than the conforming limit, combining loans is likely cheaper. But if your loan amount is significantly higher than the conforming loan limit, the jumbo mortgage will probably cost less. A mortgage loan officer can help you compare the blended rate of the piggyback combination to the jumbo loan APR.

If you can afford a jumbo mortgage, it’s a good product to help you finance a high-caliber home purchase. And stricter underwriting guidelines can save you from borrowing more than you can comfortably afford.

The loan limit applies to the amount you’re borrowing, not the sale price of the home. Say the loan limit is $832,750 in your area, and you’re buying a one-unit property for $900,000. With a 20% down payment of $180,000, you’re only borrowing $720,000 from the lender.

In this scenario, you can apply for a conforming loan. It’s generally easier to qualify for a conforming loan, so this can work in your favor.