Understanding current jumbo loan rates

Jun 17, 2025

7-minute read

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Wondering if you should refinance your jumbo loan? It helps to understand how the refinancing process works … and to be aware of today’s jumbo refinance rates.

For starters: A jumbo loan is a mortgage that exceeds the conforming loan limits for government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac of $806,500 (on up to $1,209,750 in select areas) for a one-unit property in 2025. Conforming loans are essentially purchased from your lender shortly after your closing date, which allows financiers to free up funding to approve more mortgages to everyday home buyers.

But as nonconforming finance products, high-value jumbo loans – typically used to purchase luxury or high-end homes with higher price tags – can come with added eligibility requirements attached. Happily, Rocket Mortgage® Jumbo Smart loans offer a flexible option to finance properties with up to $3 million price tags with a minimum of time and effort.

That said, it helps to note how a jumbo loan can help you refinance high-value properties with larger loan amounts by restructuring your current loan. Let’s take a closer peek at what’s involved in applying for jumbo refinance options and what current jumbo loan rates look like.

What are today’s jumbo refinance rates?

Rocket Mortgage offers competitive jumbo loan rates for every homeowner. Both purchase rates and refinance rates are available, including fixed and VA options. To discover your personalized rate, simply drop us a line to chat with an expert or submit an application to prequalify today. You can also find out more about rates, APRs and point (one-time fee) options that can help you save big on your home loan.

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Trends in current jumbo loan refinance rates

The current state of jumbo loan rates for homes remains healthy and is generally expected to remain around the mid- to high 6% range in the immediate future. That said, rates on jumbo home loans are slightly higher than conforming mortgage loan rates, because they cannot be resold to Fannie Mae or Freddie Mac, which increases risk to your lender. Market movement can also occur weekly, with jumbo rates fluctuating based on economic policy, current events and government oversight.

Jumbo loan refinance rates today generally sit lower than those seen in 2023 and 2024 but remain higher than the record low rates encountered in 2020 during the pandemic. Predicting whether refinance rates are expected to rise with any degree of certainty is difficult, given that they’re affected by an assortment of variables relating to inflation, the economy, and the actions of the Federal Reserve.

Noting that factors such as rising home prices and growing demand can lead to more competition among buyers, and prompt lenders to raise prices, keep in mind. Right now is generally good time to consider refinancing jumbo loans, as any decreases in rates are anticipated to be slight, at least in the immediate future.

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What are the qualifications to refinance a jumbo loan?

Prior to applying for a jumbo loan refinance, it’s important to know how to determine if you’re eligible to quality for one. Below, you’ll find a number of leading factors that lenders consider when determining whether or not to extend jumbo loan refinancing options. As a general rule, the better your credit score, DTI, and financing history, the more likely you’ll be to qualify for a refinancing option.

  • Credit score: Rocket Mortgage requires borrowers to have a credit score of 680 or better, unless you qualify for a VA or FHA loan. In general, a minimum credit score of 680 or higher is needed to obtain a 30-year fixed jumbo loan, and 740 for a 15-year fixed or adjustable-rate mortgage (ARM) loan, respectively. An investment property typically requires a score of 720 or higher for jumbo loan refinances.
  • Debt-to-income ratio (DTI): Per Rocket Mortgage guidelines, less than 45% of your current income should be being applied to pay off your debt on a monthly basis. Your DTI tells potential lenders how much of the money you earn each month is going toward debt payments, and is typically seen as a barometer of a borrower’s financial health.
  • Cash reserves: The term describes liquid assets that you can tap into quickly and easily to cover living expenses and mortgage payments if needed. Lenders generally like to see 6 – 12 months of cash reserves in the bank in terms of mortgage payments (including principal, taxes, insurance and interest) in the event of unexpected financial hiccups.
  • No recent bankruptcies: If you have previously declared bankruptcy, you’ll generally need to wait at least 7 years before you can refinance a jumbo loan. The waiting period is necessary to reassure lenders, who won’t enjoy the added guarantees of backing on a jumbo loan by Fannie Mae or Freddie Mac that conforming loans offer.
  • Closing costs: To refinance a jumbo loan, you’ll also need to have roughly 3% – 6% of the total amount that you’re looking to finance in closing costs on hand. Closing costs are fees assessed on top of the down payment, such as attorneys fees, appraisal fees and escrow monies, that you’re expected to pay at the time you close on a property.

Pros of refinancing a jumbo loan

Refinancing jumbo loans can help you save money and lower the amount that you pay monthly in interest expenses. Doing so also holds the potential to help you save big on overall costs of financing. Perks include the option to:

  • Lower your interest rate: If you choose to refinance your jumbo loan, you may be able to lower your interest rate. That allows you to lower your monthly charges on your home mortgage loan as well.
  • Shorten your loan term: Refinancing a jumbo loan also presents the option for you to decrease the term of your home loan. It can be an attractive choice if you’re looking to get out of debt on a more accelerated timeline.
  • Get rid of private mortgage insurance (PMI): Private mortgage insurance protects your lender, but is charged to you as a home buyer, who pays these expenses. If you refinance a jumbo loan, you gain the option to potentially remove PMI and cut your bills down significantly.

Cons of refinancing a jumbo loan

Of course, there are also potential downsides to refinancing jumbo loans as well. It’s important to be aware of them as you consider your budgeting options. Sample drawbacks might include:

  • Higher closing costs: Given the larger loan amounts that are involved, closing costs tend to range higher on jumbo loan refinances. That requires you to have more savings on hand, as monies will be due on closing day vs. financed over a long-term period.
  • It’s a longer process: Because of more stringent lending requirements and the higher amounts of money involved, jumbo loans sometimes go through a manual underwriting process in comparison to conventional loans. If you’re looking to refinance, it’s important to be aware of these potentially extended timelines.
  • They’re harder to get: Jumbo loan refinancing can be harder to obtain than other types of loans and refinance options. Before applying, it’s important to consider eligibility requirements to make sure that you qualify.

Is refinancing a jumbo loan right for me?

The short answer is that it depends on your individual needs and financial circumstances. Current jumbo loan refinancing rates may prove advantageous though, allowing you to cut both your monthly mortgage payment and the overall cost of the loan over its total lifetime. The decision on whether to refinance a jumbo loan ultimately comes down to what specific goals that you’re looking to achieve in doing so.

For example, say that you’ve managed to build up significant equity in your home over the better part of the last decade. You also happen to be a parent who’d like to invest in generational wealth by buying property that your children can live in or rent out in the years to come. Doing so is expensive because of the local real estate market, but ultimately worth it.

Noting that interest rates have fallen to be lower than when you first took out your original jumbo loan, refinancing could prove to be a strategic move. That’s because a jumbo loan refinance would allow you to lower your monthly fees, and be able to tap into some of that equity to invest in further properties for your heirs.

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Jumbo loan refinancing FAQ

Borrowers tend to have several frequently asked questions (FAQ) surrounding refinancing jumbo loan mortgages. The following information can help you decide whether refinancing a jumbo loan is the right decision for you.

Where can I get the best jumbo loan refinance rates?

The best time to secure a jumbo loan refinance is when interest rates have fallen significantly from the time when you obtained your current loan. It could also be a good time to refinance your loan if your financial circumstances have improved considerably, allowing you to present yourself as a more attractive option to potential lenders. In short, much depends on your individual financial situation, but it’s important to monitor external factors like the economic climate and current market trends as well.

Can I modify my jumbo loan rates without refinancing?

Yes, you can modify your loan instead of refinancing if you’d prefer. Should you encounter unexpected financial challenges or hardships, for example, you can work with your lender to modify the terms of your loan or establish a repayment plan that makes more sense. You can also lower your monthly payments using a mortgage recast to make a lump-sum payment to reduce your principal balance on the loan.

The bottom line: Check out current rates before refinancing your jumbo loan

Jumbo loan mortgage refinancing options can help you save significantly, both on monthly payments and your overall cost for a loan. Refinance solutions also present an opportunity to shorten your loan term and capitalize on positive changes in the market. But whether doing so makes sense for you largely depends on your individual financial circumstances and living situation.

Note that refinancing a jumbo mortgage loan can also come with higher costs, longer timeframes and more stringent requirements attached than those associated with conventional loans. But again, at the same time, the decision to refinance may also prove to be a great way to put more money back in your pocket, and gain access to equity that you’ve built up over time in your home.

Interested to see if you qualify for a jumbo loan refinance? Simply reach out today to refinance a Jumbo Smart loan with Rocket Mortgage to learn more!

Hailed as The Master of Innovation by Fortune magazine and World’s Leading Business Strategist, award-winning strategic consultant, trends expert and professional speaker Scott Steinberg is a top expert on change and innovation who’s extensively covered areas like real estate, financial services, and fintech.

Scott Steinberg

Hailed as The Master of Innovation by Fortune magazine, and World’s Leading Business Strategist, award-winning professional speaker Scott Steinberg is among today’s best-known trends experts and futurists. He’s the bestselling author of 14 books including Make Change Work for You and FAST >> FORWARD.