A jumbo mortgage is a home loan that exceeds the borrowing limits allowed on conventional home loans. Borrowers must get a jumbo loan or other alternative financing when a home is priced higher than limits backed by Fannie Mae or Freddie Mac.
Jumbo loan limits are impacted by where a property is located, and dollar limits often change from year to year. In some places with exceptionally high housing costs, Fannie Mae or Freddie Mac will approve loans at higher limits to better reflect local market conditions.
How we source rates and rate trends
Rates based on market averages as of Aug 10, 2026.Product Rate APR 10-year Fixed Jumbo Purchase 6.29% 6.34% 10-year Fixed Jumbo Refinance 6.28% 6.33% 15-year Fixed Jumbo Purchase 6.19% 6.22% 15-year Fixed Jumbo Refinance 6.19% 6.23% 20-year Fixed Jumbo Purchase 7.14% 7.17%
How Jumbo Mortgage Rates Compare to Conventional Loans
Most of the time, jumbo loan rates run somewhat higher than rates on comparable conventional loans. That’s because Fannie Mae and Freddie Mac guarantee their loans for investors, but jumbo loans don’t have that backing, so lenders assume all the risk themselves. Here’s a look at how jumbo loan interest rates are trending compared to conventional loans:
How we source rates and rate trends
Rates based on market averages as of Aug 10, 2026.Product Rate APR 30-year Fixed Purchase 6.73% 6.77% 30-year Fixed Jumbo Purchase 6.87% 6.89%
Qualifying for a Jumbo Mortgage
Requirements are generally more stringent for jumbo loans than for conventional loans. That’s because the loan amount is larger, and no government agency insures the loan.
Lenders want higher credit scores, ample cash reserves, and a larger down payment to ease their concerns about a borrower falling behind on payments or entering foreclosure. Here’s what to expect:
- Credit score: Many lenders approve borrowers for jumbo loans with FICO scores as low as 680, down from 720–740 a few years ago.
- Down payment: Many lenders now accept as little as 10–15% down, though anything under 20% will require private mortgage insurance (PMI) at an added expense. Borrowers who can put down 30% or more typically qualify for the best rates.
- Debt-to-income ratio (DTI): Your DTI should generally be no more than 43% of your gross monthly income.
- Cash reserves: Depending on the lender and loan terms, expect to have 6–12 months of reserves on hand to demonstrate liquidity.
An Adjustable Rate Loan May Be a Better Option
Borrowers who want to avoid higher monthly payments may wish to pursue an adjustable-rate jumbo loan (ARM). The initial rate for an ARM is often lower than a standard jumbo loan with fixed terms, keeping payments lower through an initial period that may run 5–10 years.
After that, the rate will adjust based on market conditions, and your jumbo loan payment will likely increase.
ARMs also work well for borrowers who expect to move every few years — as is often the case with executives building their careers. If you plan to move in five years or less, you may be able to avoid a higher fixed rate altogether. The other option is to refinance your ARM at the end of the lower-rate period if your situation permits.
Here’s how adjustable-rate jumbo mortgage rates are trending:
How we source rates and rate trends
Rates based on market averages as of Aug 10, 2026.Product Rate APR 3/6 Jumbo Arm (purchase) 5.50% 5.51% 3/6 Jumbo Arm (refinance) 5.50% 5.51% 5/6 Jumbo Arm (purchase) 6.06% 6.10% 5/6 Jumbo Arm (refinance) 6.13% 6.16% 7/6 Jumbo Arm (purchase) 6.20% 6.22%
A Piggyback Loan is a Viable Alternative
One way to minimize the cost of a jumbo mortgage is through a piggyback loan. This second mortgage covers the difference between the local conforming loan limit and the price of the home.
For example, suppose you’re looking to borrow $950,000 to buy a home, and the local loan limit is $832,750. You might obtain a conventional Fannie/Freddie mortgage for that amount and cover the rest with a piggyback loan for the balance.
The piggyback loan acts as a second mortgage (or second lien), similar to a home equity loan. If you default, it doesn’t get paid until the first lien (the conventional loan) is satisfied — which is why mortgage rates on piggyback loans run higher than on primary mortgages.
This strategy only makes sense if the combined rates on the primary and piggyback loans are lower than going with a single jumbo mortgage.
Fannie Mae and Freddie Mac Limits for 2026
These are the limits for Fannie Mae and Freddie Mac loans in 2026.
| Units | Contiguous States, D.C., Puerto Rico | Alaska, Guam, Hawaii, U.S. Virgin Islands |
| 1 | $832,750 | $1,249,125 |
| 2 | $1,066,250 | $1,599,375 |
| 3 | $1,288,800 | $1,933,200 |
| 4 | $1,601,750 | $2,402,625 |
And here are the maximum ceilings for loan limits in high-cost areas for 2026:
| Units | Contiguous States, D.C., Puerto Rico | Hawaii |
| 1 | $1,249,125 | $1,299,500 |
| 2 | $1,599,375 | $1,663,600 |
| 3 | $1,933,200 | $2,010,950 |
| 4 | $2,402,625 | $2,499,100 |
*Alaska, Guam, Puerto Rico, and the U.S. Virgin Islands do not have any high-cost areas in 2026.
Source: Fannie Mae
Ready to Refinance Your Jumbo Mortgage?
If you’re carrying a jumbo loan at a higher rate, refinancing could meaningfully lower your monthly payment and long-term interest costs. Refi.com specializes in refinancing — including jumbo mortgages — and can help you find competitive rates based on your specific financial profile. Start your application today and see what you qualify for.
