Jumbo loan refinance: A guide for borrowers

If you bought a more expensive home, you may have had to use a jumbo loan. Jumbo loans exceed the conforming loan limits set by the Federal Housing Finance Agency. For 2026, these limits are $832,750 in most areas and $1,249,125 in high-cost areas. Rocket Mortgage^® Jumbo Smart loans are available to eligible borrows with a loan amount of up to $3,000,000.

As you pay off your jumbo loan, you may decide along the way that you want to refinance your mortgage to lower your interest rate or borrow money. Current jumbo loan refinance rates will play an important factor in whether it makes sense to refinance. Let’s take a closer look at how refinancing a jumbo loan works and how to determine if it’s the right financial move for you.

What is a jumbo loan refinance?

When you refinance a mortgage, you pay off your existing loan with a new loan that has new terms. Here are some common reasons homeowners refinance:

• Lower your interest rate to reduce your monthly payment
• Lengthen or shorter your loan term
• Change your loan type
• Use your equity as collateral to borrow money

Because jumbo loans are larger than conforming loans, they pose more risk to the lender. As a result, there are stricter eligibility requirements to take out or refinance a jumbo loan. You’ll also have to pay closing costs ranging from 3% to 6% of the total loan amount. If you choose a cash-out refinance to borrow money, lenders typically allow you to refinance up to 80% of the home’s value.

What are current jumbo refinance rates?

As of January 12, 2026, the average interest rate for a 30-year fixed-rate jumbo loan is 5.625%, and the average APR is 5.817%. Over the course of 2025, the Federal Reserve made three consecutive cuts to the federal funds rate of 0.25% each. As a result, mortgage rates have begun trending downward for the first time since rising sharply between 2021 and 2024.

You can visit the Rocket Mortgage jumbo refinance rates page to see current rates and get personal estimates based on your financial situation. Simply drop us a line to chat with a Home Loan Expert or submit an application to prequalify today.

Factors affecting jumbo loan refinance rates

It’s often assumed that jumbo loans come with higher interest rates than conforming loans because they pose more risk to the lender. However, these days jumbo loans can be similar to or even lower than conforming loan rates, depending on the lender. The interest rate you’re offered on a jumbo loan refinance will be more based on market conditions and information about your financial situation, like your credit score and debt-to-income ratio.

Predicting whether market 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. When the Fed increases or cuts the federal funds rate, market rates tend to follow.

Noting that factors such as rising home prices and growing demand can lead to more competition among buyers, and prompt lenders to raise rates. 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.

What are the qualifications for a jumbo loan refinance?

Just like when you took out your existing mortgage, you’ll need to meet your lender’s eligibility requirements for a jumbo loan finance. 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 and the better your interest rate will be.

• Credit score: Rocket Mortgage requires a credit score of 680 or higher for a jumbo loan refinance, unless you qualify for a VA or FHA loan. If you’re looking to do a cash-out refinance, you’ll need a credit score of at least 700. If you want to refinance to an adjustable-rate mortgage (ARM), you’ll need a credit score of at least 740.
• Debt-to-income ratio (DTI): To refinance a fixed-rate jumbo loan with Rocket Mortgage, your DTI cannot exceed 50%. That means that no more than 50% of your current income should be needed to pay off monthly debt. To refinance an adjustable-rate jumbo loan, your DTI cannot exceed 45%.
• Cash reserves: This term refers to your liquid assets that you can tap into quickly and easily to cover living expenses and mortgage payments if needed. Lenders typically require you to have enough cash reserves to cover 6 – 12 months of mortgage payments in the event of financial hiccups.
• Loan-to-value (LTV) ratio: Most lenders require that your loan-to-value ratio not exceed 80% to refinance. That means that you’ll need to have at least 20% equity built.
• No recent bankruptcies: If you have previously declared bankruptcy, you’ll generally need to wait up 10 years before you can refinance a jumbo loan.
• Closing costs: Just like when you closed on your initial mortgage, you’ll need to pay closing costs to refinance. Your closing costs can range from 3% to 6% of the total loan amount.

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. Here are some of the big potential perks of a refinance:

• Lower your interest rate: If market rates have dropped since you first closed on your mortgage, refinancing can be a way to lower your interest rate. A lower interest rate can reduce your monthly payment and save you a significant amount in overall. However, this will require that rates have dropped and your credit score hasn’t dipped.
• Shorten or lengthen your loan term: Refinancing a jumbo loan gives you the ability to adjust the term of your home loan. If you need to reduce your monthly payment, you could lengthen your loan term, though you’ll end up paying more in interest. If your income has increased and you want to save on interest, you can shorten your loan term and get out of debt sooner.
• Change your loan type: If you have an ARM and want more predictable monthly payments, you can refinance to a fixed-rate jumbo loan.
• Access your equity: A cash-out refinance allows you to replace your mortgage with a larger loan and withdraw the difference in cash to use as you wish.

Cons of refinancing a jumbo loan

It’s also important to also be aware of the potential downsides of refinancing jumbo loans. Sample drawbacks might include:

• Higher closing costs: Closing costs add up to 3% - 6% of the total loan amount. Since jumbo loans are larger than conforming loans, so are the closing costs of refinancing one.
• Stricter eligibility requirements: Jumbo loan refinancing can be harder to qualify for than other types of loans and refinance options. Before applying, it’s important to consider eligibility requirements to make sure that you qualify.
• 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. As a result, it can take longer to refinance.
• Potentially more interest over time: If you refinance to a longer loan term or to borrow against your equity, you’ll likely pay more in overall interest than if you hadn’t refinanced. If you choose a no-closing-cost refinance, you’ll save on upfront costs but will likely pay a higher interest rate.

Is refinancing a jumbo loan right for you?

Whether it makes sense for you to refinance will depend on market conditions, your financial goals, and your future plans. If current interest rates are lower than they were when you first took out your mortgage, refinancing to a lower interest rate could save you a substantial amount of money each month and overall. If rates are now higher and you have a relatively low interest rate on your mortgage, it may not be worth refinancing.

You’ll also want to consider the up-front costs of a refinance. If you plan to move in the next few years and won’t get a chance to recoup your closing costs in potential savings. Then again, if you’re refinancing to borrow money to cover home renovations and plan to stay in your home for the long term, refinancing can be worthwhile.

You can use the Rocket Mortgage refinance calculator to see the potential impact of refinancing and speak to a Rocket Mortgage Home Loan Expert for help.

How to refinance a jumbo loan

If you have a jumbo loan and think a refinance is the right move for you, here are the steps to take.

• 1. Consider your eligibility. While each lender has its own eligibility requirements, you can use the criteria above to gauge whether you’ll likely qualify. If your credit has improved since you first took out your mortgage, that can help you score a lower interest rate.
• 2. Choose a jumbo loan refinance type. A rate-and-term refinance can help you get a better interest rate or adjust the term length of your jumbo loan. With a cash-out refinance, you can use the equity you have to borrow money.
• 3. Find a lender. It’s a good idea to shop around and get quotes from several different lenders before choosing one. Comparing the terms of different loan offers can help you find the best deal on a refinance.
• 4. Gather documentation. Your lender will need to see financial documents that show you can afford your new jumbo loan. You can expect to be asked for recent pay stubs, tax returns, W-2 or 1099 forms, and bank statements. Gathering these documents in advance can help expedite your refinance timeline.
• 5. Apply for the jumbo loan refinance. Once you’ve selected a lender, it’s time to fill out their refinance application. You can get started on a refinance with Rocket Mortgage today.
• 6. Get an appraisal. Most lenders will require a new appraisal be performed to determine the current market value of the home. This is especially true if you are doing a cash-out refinance and the lender needs to know how much equity you have.
• 7. Close on the loan. Once the underwriting process is complete, your closing day will be scheduled. At your closing you’ll sign the necessary documents, pay your closing costs, and finalize your refinance.

FAQ about refinancing a jumbo loan

Here are the answers to some more frequently asked questions about refinancing a jumbo loan.

How 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. For example, if you’ve reduced your DTI and your credit score has improved, it can help you get a lower interest rate.

Can I modify my jumbo loan rates without refinancing?

Yes, it is possible to modify your loan instead of refinancing. For example, if you encounter unexpected financial challenges or hardships, you can work with your lender to modify the terms of your loan or establish a manageable repayment plan. You can also lower your monthly payments using a mortgage recast to make a lump-sum payment and reduce your principal balance on the loan.

How soon can I refinance my jumbo loan?

Lenders typically require that you have built at least 20% equity before you can refinance.

How long does a jumbo loan refinance take?

Refinancing a jumbo loan often takes longer than refinancing a conventional loan because the underwriting process is done manually. You can expect a jumbo loan refinance to take anywhere from 45 - 60 days.

Can I refinance from a jumbo to a conventional loan?

Yes. If your loan balance has fallen below the conforming loan limit, you can refinance from a jumbo loan to a conforming loan, which is easier to qualify for.

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

Refinancing a jumbo loan to get a lower interest rate can save you a significant amount of money, both on your monthly payments and overall mortgage cost. A refinance can also allow you to adjust your loan term or switch your loan type. If you want to use your equity to borrow money, you can do a cash-out jumbo loan refinance. Whether it makes sense to refinance will depend on market conditions and your own financial goals.

Note that refinancing a jumbo mortgage loan can also come with higher costs, longer time frames, and more stringent requirements than conventional loans. Then again, a 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 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.

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Refinancing may increase finance charges over the life of the loan.