Refinance Your
Jumbo Mortgage
Lower your rate, reduce your payment, or access your home's equity. Get matched with jumbo refinance specialists today.
Lower your rate, reduce your payment, or access your home's equity. Get matched with jumbo refinance specialists today.
Key Takeaways
A jumbo mortgage refinance replaces your existing mortgage with a new loan that exceeds the conforming loan limits set by the Federal Housing Finance Agency (FHFA). For 2025, the baseline conforming limit is $766,550 in most markets, with higher limits in designated high-cost areas.[1] Any loan above this threshold falls into jumbo territory and requires specialized lenders who hold these loans in their own portfolio rather than selling them to Fannie Mae or Freddie Mac.
Jumbo refinancing works similarly to standard refinancing: you apply for a new mortgage that pays off your existing loan, ideally at a lower rate, better terms, or with a cash-out component that lets you tap your equity. The key difference is that jumbo loans carry stricter qualification requirements and are typically offered by banks, credit unions, and private lenders who specialize in high-value properties.
Because these loans cannot be backed by government-sponsored enterprises, lenders assume more risk and compensate by requiring stronger borrower profiles. However, in a competitive lending environment, jumbo rates have often been comparable to or even lower than conforming rates for well-qualified borrowers.[2]
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Whether you want to reduce your monthly payment or unlock the equity in your property, there are two primary refinance paths available.
Replace your current mortgage with a new loan at a lower interest rate, a shorter term, or both. This is the most straightforward refinance option and works best when rates have dropped since you obtained your original loan or your credit profile has improved significantly.
Access the equity you have built in your home by refinancing for more than your current balance. The difference is paid to you in cash at closing and can be used for renovations, debt consolidation, investment opportunities, or other major expenses.
Jumbo loans are not one-size-fits-all. Loan amounts, qualification criteria, and available terms vary based on whether your loan falls into the standard jumbo or super jumbo category.
| Feature | Jumbo Loans | Super Jumbo Loans |
|---|---|---|
| Loan Amount | $766,550 to $3,000,000 | $3,000,001 and above |
| Minimum Credit Score | 700 | 720 |
| Maximum LTV | Up to 80% | Up to 75% |
| Loan Terms | 10-30 years | 10-30 years |
| Rate Options | Fixed and ARM | Fixed and ARM |
| Occupancy Types | Primary, secondary, investment | Primary, secondary, investment |
| Property Types | 1-4 units, condos, co-ops | 1-4 units, multi-family, commercial |
| Prepayment Penalty | Typically none | Flexible / negotiable |
| Reserve Requirements | 6-12 months PITI | 12-24 months PITI |
| Closing Time | 30-45 days | 30-45 days |
[4] Specific terms vary by lender. High-cost area limits may be higher than the baseline $766,550.
On a $1.5 million jumbo mortgage, reducing your rate by just 0.5% saves roughly $450 per month or $5,400 per year. Over a 30-year term, that is more than $160,000 in total interest savings. Even small rate reductions on jumbo loans translate to significant dollar amounts because the principal balance is so large.
Jumbo refinance lenders apply stricter qualification criteria than conforming loan programs because they retain the risk on their balance sheet. Here is what most lenders evaluate:[3]
A minimum score of 700 is standard for jumbo refinances, with 720+ required for super jumbo loans. Scores of 740 and above typically qualify for the most competitive rates. Unlike conforming loans where automated underwriting allows lower scores, jumbo lenders manually review each application and weight credit history heavily.
Most jumbo lenders cap LTV at 80% for primary residences, meaning you need at least 20% equity. For cash-out refinances, the cap is often 75%. Investment properties typically require 25-35% equity. A recent appraisal confirming your property value is required.
Lenders require liquid reserves equal to 6-12 months of mortgage payments (PITI) for jumbo loans and 12-24 months for super jumbo. Acceptable reserves include checking, savings, retirement accounts, and investment portfolios. This requirement ensures borrowers can continue making payments during financial disruptions.
Most jumbo lenders require a DTI below 43%, though some allow up to 45% with strong compensating factors. Your DTI includes all monthly debt obligations (mortgage, car payments, student loans, credit cards) divided by your gross monthly income.
Full documentation is typically required: two years of tax returns, W-2s or 1099s, recent pay stubs, and bank statements. Self-employed borrowers may need a CPA letter, profit-and-loss statements, and business tax returns. Some lenders offer bank statement programs for self-employed borrowers with complex tax situations.
Refinancing involves closing costs typically ranging from 2-5% of the loan amount. For a $1 million jumbo loan, that means $20,000 to $50,000 in upfront costs. You should evaluate whether the savings justify these costs before proceeding.[6]
If current rates are 0.5% or more below your existing rate, a rate-and-term refinance likely makes financial sense. Calculate your break-even point: divide total closing costs by monthly savings to determine how many months it takes to recoup the upfront costs. If you plan to stay in the home longer than the break-even period, the refinance is worthwhile.
If you have an adjustable-rate mortgage approaching its reset date, refinancing into a fixed rate locks in predictable payments and protects against potential rate increases. This is particularly valuable in rising rate environments where your ARM could adjust significantly higher.
Homeowners with substantial equity can use a cash-out refinance to access capital at mortgage rates, which are significantly lower than credit card or personal loan rates. Common uses include home renovations that increase property value, consolidating high-interest debt, or funding investment property purchases.
Refinancing from a 30-year to a 15-year term can dramatically reduce total interest paid over the life of the loan. While monthly payments will be higher, the total cost of the loan drops substantially. On a $1.5 million loan, the interest savings from switching to a 15-year term can exceed $500,000.
The jumbo refinance process follows a structured timeline from application to closing. Understanding each step helps you prepare the right documentation and avoid delays.
Submit your financial overview to receive an initial rate quote and loan amount estimate. This involves a soft credit pull and basic review of income, assets, and property value. Pre-qualification helps you compare offers from multiple lenders before committing.
Submit your formal application with full documentation: tax returns, pay stubs, bank statements, and property information. The lender orders a full credit report and begins underwriting review.
The lender orders a property appraisal to confirm the current market value supports the requested loan amount. For jumbo properties, appraisals are more detailed than standard appraisals and may require comparables from a wider geographic area.
A manual underwriter reviews your complete file, verifying income, assets, credit, and property value. Jumbo loans do not use automated underwriting systems, so this step is more thorough. Be prepared for additional documentation requests (conditions) at this stage.
Once underwriting is complete and all conditions are satisfied, you receive a clear-to-close notice. You will review and sign closing documents, and the loan funds within a few business days. Your old mortgage is paid off and the new terms take effect.
Historically, jumbo mortgage rates carried a premium of 0.25% to 1.0% above conforming rates because lenders could not sell them to Fannie Mae or Freddie Mac and had to keep the risk on their books.[2] However, this spread has narrowed significantly in recent years, and in some market conditions, jumbo rates have been equal to or even lower than conforming rates.
| Loan Type | Typical Rate Range | Best Suited For |
|---|---|---|
| 30-Year Fixed Jumbo | 6.5-7.5% | Long-term homeowners seeking stability |
| 15-Year Fixed Jumbo | 5.75-6.75% | Borrowers who want to pay off faster |
| 5/1 ARM Jumbo | 5.5-6.5% | Homeowners planning to move within 5-7 years |
| 7/1 ARM Jumbo | 5.75-6.75% | Moderate-term hold with initial savings |
| 10/1 ARM Jumbo | 6.0-7.0% | Longer fixed period with eventual rate risk |
[2] Rates shown are indicative and subject to change based on market conditions, creditworthiness, and property type.
The primary factors that influence your specific rate include credit score, LTV ratio, property type (primary residence vs. investment), loan amount, and the rate structure you choose (fixed vs. ARM). Borrowers with excellent credit (740+), low LTV (below 65%), and significant reserves typically receive the most competitive rates.
Jumbo refinance applications require thorough documentation. Having these items ready before you apply helps avoid delays.[5]
Jumbo refinance loans start at $766,550 in most markets, which is the 2025 conforming loan limit set by the FHFA. In high-cost areas like parts of California and New York, the conforming limit is higher, so your loan must exceed the local limit to qualify as jumbo. Super jumbo loans start at $3 million.
Most jumbo lenders require a minimum credit score of 700 for standard jumbo loans and 720 for super jumbo loans above $3 million. Higher credit scores (740+) qualify for the best rates and terms. Some lenders may accept scores as low as 680 with strong compensating factors like significant reserves or low LTV.
Jumbo refinance closings typically take 30 to 45 days from application to funding. The timeline depends on appraisal scheduling, title work, and documentation review. Complex situations like self-employed borrowers or properties with unique features may take longer.
Yes, jumbo cash-out refinancing allows you to access your home equity while potentially lowering your rate. Most lenders allow cash-out up to 75-80% LTV on primary residences and 65-70% on investment properties. The funds can be used for any purpose including renovations, debt consolidation, or investment opportunities.
A conforming loan falls within the limits set by the Federal Housing Finance Agency ($766,550 in most areas) and can be purchased by Fannie Mae or Freddie Mac. A jumbo loan exceeds these limits and is held by the originating lender or sold to private investors. Jumbo loans typically require higher credit scores, larger down payments, and more reserves.
The right choice depends on your plans. Fixed rates offer payment stability and protection against future rate increases, making them ideal if you plan to stay long-term. Adjustable-rate mortgages (ARMs) like 5/1 or 7/1 offer lower initial rates, which work well if you plan to sell or refinance again within 5-7 years.
Clear House Lending connects you with specialized jumbo lenders who compete for your business. Our network includes banks, credit unions, and private lenders who focus on high-value properties and can offer competitive terms tailored to your situation.
2024 Conforming Loan Limit Values. Federal Housing Finance Agency, November 2024.
https://www.fhfa.gov/data/conforming-loan-limit.
Primary Mortgage Market Survey. Freddie Mac, 2026.
https://www.freddiemac.com/pmms.
Weekly Applications Survey. Mortgage Bankers Association, 2026.
https://www.mba.org/news-and-research/research-and-economics/single-family-research/weekly-applications-survey.
What is a Jumbo Loan?. Consumer Financial Protection Bureau, 2024.
https://www.consumerfinance.gov/ask-cfpb/what-is-a-jumbo-loan-en-1791/.
Existing Home Sales Statistics. National Association of Realtors, 2026.
https://www.nar.realtor/research-and-statistics.
Housing Finance At A Glance Monthly Chartbook. Urban Institute, 2025.
https://www.urban.org/research/publication/housing-finance-glance-monthly-chartbook.
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