Jumbo Loan Refinance: Rates, Requirements & Tips

Your mortgage is above $802,650. You have a jumbo loan.

Refinancing jumbo loans is different — stricter requirements, higher rates, but still worth it if you do it right.

What Is a Jumbo Loan?

Jumbo loan = any mortgage above the conforming loan limit.

2026 conforming limits:

• Most areas: $802,650
• High-cost areas (e.g., San Francisco, LA, NYC): Up to $1,204,000

If your loan is above these limits, it's jumbo.

Why does this matter? Conforming loans can be sold to Fannie Mae or Freddie Mac (government-sponsored enterprises). Jumbo loans can't. Lenders hold more risk → stricter requirements + higher rates.

Get jumbo refinance rates →

Jumbo Loan Requirements (Stricter Than Conventional)

1. Credit Score: 700+ Minimum (740+ for Best Rates)

Conventional conforming: 620 minimum Jumbo: 700 minimum (most lenders), 720-740 for best rates

Rate tiers:

• 760+: Best rates (6.25-6.50%)
• 740-759: Good rates (6.50-6.75%)
• 720-739: Higher rates (6.75-7.00%)
• 700-719: High rates (7.00-7.50%)
• Below 700: Denied or portfolio lender only (8%+ rates)

Broker's Tip: If your score is 715, wait until you hit 720 before applying. That 5-point jump can save you 0.25% in rate ($200+/month on a $1M loan).

2. Down Payment / Equity: 20% Minimum

Conforming: Can refi with as little as 3% equity (FHA 3.5%) Jumbo: 20% equity minimum (80% max LTV)

Some lenders go to 90% LTV (10% equity), but:

• Rates are 0.5-1% higher
• Require perfect credit (760+)
• May require reserves of 12-24 months

Example:

• Home value: $1,200,000
• Max jumbo refi at 80% LTV: $960,000
• Current mortgage: $1,000,000
• You can't refinance (not enough equity)

Wait for appreciation or pay down principal to hit 20% equity.

3. Debt-to-Income (DTI): 43% Max (Preferably 36%)

Conforming: Up to 50% DTI Jumbo: Max 43% DTI (some lenders cap at 38%)

Example:

• Gross monthly income: $25,000
• New mortgage (PITI): $8,500
• Car payment: $800
• Student loans: $400
• Total debt: $9,700
• DTI: 38.8%

You qualify (under 43%). But if DTI is 40%+, expect rate hits or denials.

4. Cash Reserves: 12-24 Months Required

Conforming: 2-6 months of reserves Jumbo: 12-24 months of reserves in liquid assets

Reserves = months of mortgage payments (PITI) you have in the bank.

Example:

• New mortgage payment (PITI): $9,000/month
• Required reserves: 12 months = $108,000 in cash/investments

What counts as reserves:

• Checking/savings accounts
• Stocks, bonds, mutual funds (70% of value counts)
• Retirement accounts (60% of value counts, if accessible without penalty)

What doesn't count:

• Home equity
• Retirement accounts you can't access penalty-free (if under 59.5)
• Business assets

5. Income Documentation (Extremely Strict)

W-2 employees:

• Last 2 years of W-2s
• Last 2 months of pay stubs
• Last 2 years of tax returns
• Verification of employment (VOE) from employer

Self-employed:

• Last 2 years of personal + business tax returns
• YTD profit & loss statement
• Balance sheet
• Business bank statements (3-6 months)
• CPA letter verifying income

Lenders are looking for:

• Stable income (no big fluctuations)
• 2+ years in same line of work
• Income is trending up, not down

Broker's Tip: Self-employed jumbo borrowers get hammered with documentation. Gather everything before you apply. Missing one form delays your closing by weeks.

6. Property Type Restrictions

Jumbo lenders are picky about property types.

Allowed:

• Single-family primary residence (best rates)
• Single-family second home (add 0.125-0.375%)
• Single-family investment property (add 0.5-1%)
• Condos in Fannie/Freddie-approved buildings (add 0.25%)

Not allowed (or very difficult):

• Condos in non-approved buildings
• Co-ops
• Properties over 10 acres
• Non-standard construction (log homes, geodesic domes, etc.)
• Properties in declining markets

Jumbo Loan Rates (March 2026)

30-year fixed jumbo rates:

• 760+ credit, 20% equity: 6.25-6.50%
• 740-759 credit: 6.50-6.75%
• 720-739 credit: 6.75-7.00%
• 700-719 credit: 7.00-7.50%

15-year fixed jumbo rates:

• 760+ credit: 5.625-5.875%
• 740+ credit: 5.875-6.125%

Compare to conforming rates (same credit/LTV):

• Conforming 30-year: 6.00-6.25%
• Jumbo is 0.25-0.50% higher

Why the difference? Lenders can't sell jumbo loans to Fannie/Freddie. They hold the risk or sell to private investors (who demand higher returns).

Jumbo Cash-Out Refinance

Max cash-out LTV: 80% (some lenders limit to 75%)

Example:

• Home value: $1,500,000
• Max loan at 80% LTV: $1,200,000
• Current mortgage: $900,000
• Max cash-out: $300,000

Rates on cash-out jumbo: Add 0.375-0.75% to standard jumbo rates.

Common uses:

• Down payment on second home or investment property
• Pay off high-interest debt
• Fund business ventures
• Renovations

Cash-out jumbo loans are heavily scrutinized. Lenders want to see:

• Strong credit (740+)
• Low DTI (under 38%)
• 18-24 months of reserves

See our cash-out refinance guide.

ARM vs Fixed for Jumbo Loans

Jumbo ARMs are popular because initial rates are 0.75-1.25% lower than fixed.

March 2026 jumbo ARM rates:

• 10/6 ARM: 5.375-5.625% (fixed for 10 years, then adjusts every 6 months)
• 7/6 ARM: 5.50-5.75%
• 5/6 ARM: 5.625-5.875%

Compare to 30-year fixed: 6.25-6.50%

ARMs make sense if:

• You're selling or refinancing within the fixed period
• You expect rates to drop (you can refi before adjustment)
• You want the lowest payment today

ARMs are risky if:

• You're staying long-term (rates could spike after adjustment)
• You can't handle payment increases

See our fixed vs ARM guide.

Portfolio Lenders vs Agency Lenders

Agency lenders follow Fannie/Freddie guidelines (even for jumbo loans, they use similar standards).

Portfolio lenders (small banks, credit unions) keep loans on their own books. They can be more flexible:

• Credit score as low as 680 (rare)
• DTI up to 50% (case-by-case)
• Non-standard properties
• Unique income situations

Tradeoff: Portfolio lender rates are 0.5-1% higher than agency jumbo rates.

When to use portfolio lenders:

• You don't fit agency guidelines
• You're self-employed with complex income
• Property is non-standard

Jumbo Refinance Closing Costs

Expect higher closing costs on jumbo loans.

Typical costs on a $1,000,000 jumbo refi:

• Origination fee: 1% = $10,000
• Appraisal: $600-$1,000 (jumbo properties often require two appraisals)
• Title insurance: $2,500-$4,000
• Lender fees: $1,500-$2,500
• Total: $14,000-$18,000

Some lenders waive origination fees but charge a higher rate (lender credits). Compare total cost, not just rate.

Should You Refinance Your Jumbo Loan?

Refinance if:

1. You can drop your rate by 0.75%+. On a $1M loan, 0.75% = $450/month savings.

2. You're switching from ARM to fixed. Lock in today's rates before your ARM adjusts.

3. Your credit improved significantly. If you started with a 700 score and you're now 760, you could save 0.5-1% in rate.

4. You need cash for another property. Cash-out refi at 7% might be cheaper than a bridge loan at 10-12%.

Don't refinance if:

1. Break-even is over 5 years. Jumbo refi closing costs are high ($15,000-$20,000). Make sure you'll recover them.

2. You're selling soon. Don't pay $18,000 upfront if you're listing in 18 months.

3. Rates only dropped 0.25-0.50%. Savings might not justify the hassle and cost.

Frequently Asked Questions

Q: Can I get a jumbo loan with 10% down?

On a purchase, yes (some lenders allow it). On a refinance, you need 20% equity minimum (80% LTV max). 90% LTV jumbo refis are extremely rare.

Q: Do I need two appraisals for a jumbo refinance?

Depends on the lender and loan amount. Loans over $1.5-2M often require two appraisals (lender wants confirmation of value).

Q: Can I refinance a jumbo loan if I'm self-employed?

Yes, but documentation is intense. Expect to provide 2 years of tax returns (personal + business), P&L, balance sheet, bank statements, CPA letter.

Q: Are jumbo rates negotiable?

More so than conforming rates. Jumbo lending is relationship-based. If you have multiple accounts with a bank, they might give you a rate discount.

Q: What if my home value dropped and I'm close to 80% LTV?

If the appraisal comes in low and you're over 80% LTV, the lender will either:

• Deny the loan
• Require you to pay down principal to hit 80%
• Offer a higher rate for 85-90% LTV

Q: Can I refinance a jumbo loan on an investment property?

Yes, but expect:

• Max LTV: 75%
• Rates 0.5-1% higher
• 12-24 months of reserves required

See our investment property refinance guide.

Next Steps

Get personalized jumbo refinance rates:

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I'm a California licensed mortgage broker with 15+ years experience (DRE #01212512). I specialize in jumbo loans for California homeowners.

Related guides:

• How Refinance Rates Are Determined
• Cash-Out Refinance Guide
• Investment Property Refinance
• Current Refinance Rates