A mortgage rate is the amount of interest lenders charge on a home loan and may differ depending on the amount you borrow and whether you opt for a fixed- or adjustable-rate mortgage. Jumbo mortgage rates are rates associated with jumbo loans. Jumbo loans exceed the 2024 limits of conforming loans: $766,550 for single-family homes or $1,149,825 in locations with higher home values. Those looking for high-value homes will purchase them through a jumbo loan with a corresponding jumbo loan rate.
Today's Jumbo Mortgage Rates
National averages of the lowest jumbo mortgage rates offered by more than 200 of the country's top lenders, with a loan-to-value ratio (LTV) of 80%, an applicant with a FICO credit score of 700-760, and no mortgage points. | ||
---|---|---|
Loan Type | Purchase | Refinance |
Jumbo 30-Year Fixed | 6.82% | 6.83% |
Jumbo 15-Year Fixed | 6.75% | 6.78% |
Jumbo 7/6 ARM | 6.45% | 6.55% |
Jumbo 5/6 ARM | 6.55% | 6.55% |
Today's Rates for All Mortgage Loan Types
National averages of the lowest rates offered by more than 200 of the country's top lenders, with a loan-to-value ratio (LTV) of 80%, an applicant with a FICO credit score of 700-760, and no mortgage points. | ||
---|---|---|
Loan Type | Purchase | Refinance |
30-Year Fixed | 7.12% | 7.45% |
FHA 30-Year Fixed | 7.18% | 7.51% |
VA 30-Year Fixed | 6.85% | 7.41% |
Jumbo 30-Year Fixed | 6.82% | 6.83% |
20-Year Fixed | 6.95% | 7.29% |
15-Year Fixed | 6.46% | 6.73% |
FHA 15-Year Fixed | 6.79% | 6.92% |
Jumbo 15-Year Fixed | 6.75% | 6.78% |
10-Year Fixed | 6.39% | 6.65% |
10/6 ARM | 7.47% | 7.75% |
7/6 ARM | 7.61% | 7.78% |
Jumbo 7/6 ARM | 6.45% | 6.55% |
5/6 ARM | 7.73% | 7.83% |
Jumbo 5/6 ARM | 6.55% | 6.55% |
What Is a Mortgage Rate?
Home loans come with a mortgage rate, which is the amount of interest borrowers are charged in exchange for the amount lent by the financing company. Rates can be fixed or adjustable. Fixed rates won’t change throughout the mortgage term, while adjustable-rate mortgages fluctuate based on a benchmark rate for the duration of the mortgage term—usually every six months or a year.
The mortgage rate is one of the most important features for borrowers looking into home financing options. That’s because this rate will affect the monthly payments and total interest paid over the course of the loan.What Is a Jumbo Mortgage?
These limits vary based on where you live. In general, areas with a higher cost of living will have higher limits. As of 2024, FHFA set the conforming loan limit at $766,550 (single-family homes) for most U.S. counties. There is an exception where there are higher home values, and the limit is increased to $1,149,825. Anything above these numbers is a jumbo mortgage.
How Are Jumbo Mortgage Rates Set?
Does the Federal Reserve Decide Mortgage Rates?
The Federal Reserve doesn’t determine mortgage rates directly. Instead, it influences the rate indirectly by deciding on short-term interest rates. These rates are ones that financial institutions use to borrow from each other and which the government issues short-term bonds.
Ultimately, the Federal Reserve uses these rates to help guide the economy by encouraging growth and controlling inflation. Lowering rates is often a sign of trying to stimulate the economy with new big-ticket purchases such as homes.Whenever the Federal Open Market Committee decides to raise or lower short-term interest rates, lenders raise or lower theirs accordingly.What Is a Good Jumbo Mortgage Rate?
What's considered a good jumbo mortgage rate will depend on your individual credit profile. Just because you see low advertised rates doesn't mean you'll get that rate. The best rates are offered to those with excellent credit, a sizable amount of assets, and a low debt-to-income ratio, among other factors.
Do Different Mortgage Types Have Different Rates?
Are Interest Rate and APR the Same?
Borrowers may notice some lenders offer interest rates and annual percentage rates (APR) that are similar, but they are in fact two different things. The interest rate, expressed as a percentage, is the amount a lender intends to charge borrowers for the amount lent (known as the principal). The APR, also expressed as a percentage, includes the interest rate plus all lender charges rolled into the loan, such as application fees, broker fees, origination fees, and any mortgage points.
APRs tend to be higher than their corresponding interest rates. When they are similar, it means the mortgage has fewer added costs rolled into the loan. The lower the APR, the fewer borrowers pay for the loan over the course of the contract term.How Do I Qualify for Better Jumbo Mortgage Rates?
Due to the more stringent requirements in qualifying for a jumbo mortgage, borrowers need to have a high credit score, a low debt-to-income (DTI) ratio, and plenty of assets or cash reserves. In other words, lenders want borrowers to prove they’re financially stable and creditworthy enough to take out a jumbo loan since they can’t sell their loans to Fannie Mae or Freddie Mac to offload some risks.
Many lenders want to see scores of 700 or more to offer competitive rates. To raise yours, first, see where you stand. You can get a free credit report from all three major credit bureaus—Equifax, Experian, and TransUnion—from AnnualCreditReport.com. Make sure all the information on your reports is accurate. Otherwise, contact the credit reporting bureau and the appropriate creditor of any discrepancies to contest it. There are plenty of ways to raise or maintain your credit score, but the most effective way is to ensure you’re paying down your debt and making on-time payments. Other actions include not taking out any additional loans or debts when applying for a mortgage.As for your DTI, this ratio is a percentage of your gross income that goes toward paying your monthly debt obligations. Lenders look at this number to determine whether you can afford your mortgage payments. Lenders want borrowers to have a DTI of no more than 43% but ideally seek DTI ratios of 36% or less.Lenders also look at a front-end DTI, which calculates how much of your gross income goes toward housing. To calculate the front end, divide all your housing expenses (including mortgage payments and homeowners insurance) by your gross income. Lenders prefer that this number is no more than 28% of your total income.
If your DTI is high, you can lower that amount by increasing your income or paying down more of your existing debt.Other ways to help you qualify for better jumbo mortgage rates include having more cash reserves. Larger amounts of assets show lenders that, if need be, you can draw from these reserves to pay your monthly mortgage payments. Mortgage lenders may not require a huge down payment (some may ask for 10% down), but to avoid the cost of private mortgage insurance and increase your chances of getting a better rate, aiming for 20% down is a good idea.How Big a Mortgage Can I Afford?
What Are Mortgage Points?
Should I Get a Jumbo Mortgage?
How We Track the Best Jumbo Mortgage Rates
In order to assess the best jumbo mortgage rates, we first needed to create a credit profile. This profile included a credit score ranging from 700 to 760 with a property loan-to-value ratio (LTV) of 80%. With this profile, we averaged the lowest rates offered by more than 200 of the nation’s top lenders. As such, these rates are representative of what real consumers will see when shopping for a mortgage. Keep in mind that mortgage rates may change daily and this data is intended to be for informational purposes only. A person’s personal credit and income profile will be the deciding factors in what loan rates and terms they are able to get. Loan rates do not include amounts for taxes or insurance premiums and individual lender terms will apply.-
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