Compare Today's Jumbo Refinance Rates

How can you find the best jumbo refinance rates?

NerdWallet’s mortgage rate tool can help you find competitive jumbo loan rates. At the top of this page, enter a few details about the loan you’re looking for, and you’ll get custom rate quotes in seconds without providing any personal information. From there, you can start the process to get preapproved for your jumbo refinance.

» MORE: How to refinance a jumbo loan

What loan amount qualifies as a jumbo mortgage?

A jumbo mortgage is any mortgage for an amount above the conforming loan limit, which is updated annually and varies by location.

Depending on the amount you're refinancing, you may be able to use a conventional refinance, even if you started out with a jumbo loan. If you've paid down a large chunk of your mortgage and aren't looking to take out cash, you might find yourself below the conforming loan limit for your area.

What are the requirements for refinancing a jumbo mortgage?

Like all nonconforming loans, jumbo loans aren't subject to regulation by a government agency. That means lenders can set their own rules for minimum credit scores, debt-to-income ratios and other loan requirements. Because there may be considerable variation across lenders, it makes even more sense to shop around than it does for a conforming loan. One lender might offer a great interest rate but request an outsized amount of cash reserves. Another lender could have slightly higher rates but be more forgiving on qualifications. You'll need to decide what matters most to you.

Here are some of the general requirements you can expect when trying to get a jumbo refinance:

Healthy credit score. A credit score of 680 is about as low as you could go with a jumbo loan. Depending on the loan's characteristics, the minimum required score could go as high as 740.

Low debt-to-income ratio. For a jumbo refinance, your DTI usually can't be more than 45%. That means all your monthly debts, including your mortgage payment, divided by your gross monthly income should come out to a ratio of less than 45%. ^[0]

Substantial cash reserves. With a jumbo loan, lenders don't have another agency to fall back on if you default. To protect themselves, lenders will often ask for proof that you have substantial cash reserves that could pay the mortgage in a worst-case scenario. You might need to show you could make up to a year's worth of payments with the cash you have on hand.

No bankruptcies or foreclosures. With some home loans, lenders will allow you to refinance after a bankruptcy or foreclosure with a minimal waiting period. With a jumbo loan, you may not be able to refinance until those are completely gone from your credit reports, which could take up to 10 years.

Jumbo refinances also tend to undergo more scrutiny in underwriting because of their size and the risk to the lender. Expect to provide documentation of all of your income, going well beyond the standard W2 if you're self-employed.

When should you refinance a jumbo mortgage?

The decision to refinance a jumbo mortgage is similar to refinancing a conforming loan, and you've got comparable options with your larger loan.

If interest rates have fallen significantly since you got your mortgage, you could use a rate-and-term refinance to lower your monthly payment.

You may want to put some of your home equity to work for a renovation or to pay tuition. A cash-out refinance, where you borrow a larger amount than what's still owed on your mortgage and receive the difference in cash, can help you tap equity.

Refinancing lets you change other aspects of your loan, too, since you're getting a new start. If you initially took out an adjustable-rate jumbo loan, you might want to refinance to change your loan type and get a fixed-rate loan.

You can also potentially change your loan's term. You could start over with a new 30-year jumbo loan — possibly lowering your monthly payments but adding more interest over the life of the loan. Shortening the loan's term would raise your monthly payments but could net you a lower interest rate.

Remember that you'll have to pay refinance closing costs, which with a larger loan will be a bigger chunk of money. Refi closing costs usually range between 2% and 6% of the amount borrowed.

In the final analysis, it’s a matter of thinking about your priorities and running the numbers. A mortgage refinance calculator lets you see how your monthly costs might change after a refi, allowing you to decide what will work best for you.

Learn more about jumbo loans:

• What You Need to Know about Jumbo Mortgages

• Differences Between Conforming and Jumbo Loans

• NerdWallet’s Refinance Calculator