Jumbo Mortgage Rates for February 2023

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Your home can be jumbo size, but that doesn’t mean your interest rate has to be jumbo, too. 

Here’s what you need to know about jumbo loans.

What Is a Jumbo Loan?

A jumbo loan is a mortgage that allows you to buy a home with a value that exceeds the maximum conforming loan limits set by the Federal Housing Finance Agency (FHFA). Jumbo loans require larger down payments and typically have higher interest rates. Lenders will look at income, credit score, and credit history. But the qualifications for jumbo loans are stricter than traditional loan requirements. 

The Latest Mortgage Rate & Housing News

What’s Going On With Rising Mortgage Rates?

Mortgage rates have been on the rise since the start of the year and haven’t stopped yet. A big reason behind the increase is that inflation has remained at its highest level in 40 years. The Consumer Price Index was up 8.2% year-over-year in September – lower than August but still well above what markets and the Federal Reserve are comfortable with.

The Fed’s approach to high inflation has been to raise its benchmark short-term interest rate, a strategy that aims to make borrowing more expensive and encourage saving, driving down demand for goods and services and reducing prices. The Fed last raised its federal funds rate in September, and is expected to do so again in November.

The economic situation has mortgage rates jumping up and down on a daily basis.

“The market just can’t really decide which way it wants to go in terms of the direction of rates,” says Melissa Cohn, regional vice president of William Raveis Mortgage in New York.

Don’t expect mortgage rates to plummet until economic conditions change, experts say.

“Until we get some sustained evidence that inflation is beginning to recede, the upward pressure on mortgage rates will remain,” Odeta Kushi, deputy chief economist at First American Financial Corporation, told us.

What Can Homebuyers Do About Rising Mortgage Rates?

The current housing environment is particularly tough for first-time homebuyers, but it might still make sense to buy. “It’s always a good time to buy a home, if that’s what is important to you. It’s just about doing your research and making good informed decisions,” Eileen Derks, head of mortgage at Laurel Road, told us

Rising mortgage rates have made affordability increasingly difficult for homebuyers, despite some drops in home prices. If you’re considering a mortgage, experts say it’s more important than ever to shop around with different lenders, as rates can vary dramatically from day to day and from lender to lender.

“Until you’re ready to lock, you need to keep your eye on more than one ball,” Cohn says.

What’s Happening With Home Prices?   

The big surge in mortgage rates has started to bring down home prices. The median existing home sold for $389,500, up 7.7% from a year earlier but down from figures of more than $400,000 seen earlier in the summer, according to the National Association of Realtors (NAR).

How quickly the housing market is turning around depends on where you are. In some cities, prices are seeing month-to-month price drops of nearly 3%, while others are still riding a wave of increases. “It’s very market-dependent at the moment,” says Robert Heck, vice president of mortgage at Morty, an online mortgage broker. 

Home sales figures are dropping significantly – down 0.4% from July to August and nearly 20% from August 2021 – in part because homeowners who have favorable mortgage rates are unwilling to sell and get a loan at a much higher rate. 

Homebuyers facing a difficult environment can find creative ways to save money on a home purchase. One is to consider an adjustable-rate mortgage, Cohn says. They tend to offer periods of several years with a fixed rate – and it should be significantly lower than a 30-year fixed rate would be – before the rate starts to adjust with the market. That should give you a few years to refinance if the market improves.

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What Are Today’s Jumbo Mortgage Rates?

On Thursday, February 02, 2023 according to Bankrate’s latest survey of the nation’s largest mortgage lenders, the average 30-year jumbo mortgage rate is 6.350% with an APR of 6.370%. The average 15-year jumbo mortgage rate is 5.710% with an APR of 5.730%.

Current Jumbo Mortgage Rates

ProductInterest RateAPR
30-Year Fixed Rate6.410%6.430%
30-Year FHA Rate5.590%6.510%
30-Year VA Rate5.710%5.900%
30-Year Fixed Jumbo Rate6.420%6.430%
20-Year Fixed Rate6.390%6.410%
15-Year Fixed Rate5.700%5.730%
15-Year Fixed Jumbo Rate5.740%5.760%
5/1 ARM Rate5.350%7.150%
5/1 ARM Jumbo Rate5.370%6.900%
7/1 ARM Rate5.940%6.680%
7/1 ARM Jumbo Rate6.100%6.350%
10/1 ARM Rate6.240%6.570%
ProductInterest RateAPR
30-Year Fixed Rate6.360%6.370%
30-Year FHA Rate5.560%6.460%
30-Year VA Rate5.710%5.820%
30-Year Fixed Jumbo Rate6.350%6.370%
20-Year Fixed Rate6.350%6.370%
15-Year Fixed Rate5.660%5.680%
15-Year Fixed Jumbo Rate5.710%5.730%
5/1 ARM Rate5.430%7.390%
5/1 ARM Jumbo Rate5.500%7.380%
7/1 ARM Rate5.830%6.780%
7/1 ARM Jumbo Rate6.020%6.340%
10/1 ARM Rate6.150%6.680%

Rates as of Thursday, February 02, 2023


These rate averages are based on weekday mortgage rate information provided by national lenders to Bankrate.com, which like NextAdvisor is owned by Red Ventures. These averages provide borrowers a broad view of average rates that can inform borrowers when comparing lender offers. We feature both the interest rate and the annual percentage rate (APR), which includes additional lender fees, so you can get a better idea of the overall cost of the loan. The actual interest rate you can qualify for may be different from the average rates quoted in our rate table. But these rates are useful for giving you a benchmark to use when comparing loan offers by giving you a sense of how the type of mortgage and the length of the repayment term impacts your interest rate and APR.

Jumbo Loans: Frequently Asked Questions (FAQ)

What is the 2022 jumbo loan limit?

The baseline FHFA conforming loan limit for 2023 is $726,200 for single-unit homes. In certain high-cost areas, that limit increases to a maximum of $1,089,300. The loan limit varies by county and you can see the limit for your area using the FHFA’s conforming loan limits map.

The conforming loan limits for multi-unit properties are higher and top out at $2,095,200 for 4-unit properties located in high-cost areas. Any property with more than four units is considered a commercial property and requires a commercial mortgage.

What are qualifications for a jumbo loan?

Qualifying for a jumbo loan is more difficult than getting a conventional mortgage. The specific jumbo loan lending guidelines vary by lender, but you’ll need a bigger down payment, and much higher credit score.

With a typical conventional mortgage you may be able to qualify with a credit score of 650 or higher. That’s not the case with jumbo loans, where a minimum credit score of 700+ typically is required. Some conventional loans allow you to purchase a home with only 3% down. But a standard down payment for a jumbo loan starts at 10% and can be as much as 40% of the purchase price.


When should I consider a jumbo mortgage?

Jumbo loans are popular choices for investment properties and vacation homes as they tend to be more expensive. They are difficult to get because not every lender offers them. The bigger the loan, the riskier it is for the lender. Be aware of the stricter requirements when searching for a jumbo loan. 

What are the benefits of a jumbo loan?

The main benefit to a jumbo loan is you can borrow more money and buy into a more expensive home. Jumbo loans allow the borrower to buy a property that they may not have been able to get with a conventional loan. 

What’s the difference between a 15-year and a 30-year jumbo loan?

Shorter term, 15-year mortgages typically have lower interest rates, and because you’re paying off the loan sooner, you’ll pay much less interest overall. For 30-year repayment terms, you’ll have much lower and more affordable monthly payments

By definition, jumbo loans are for much larger amounts, and that means that the differences between a 15-year and 30-year loan are much more pronounced. As you can see, a 15-year loan could cost you nearly $1,600 a month more but save you almost $300,000 over the life of the loan:

Loan TermLoan AmountInterest RateMonthly Principal & Interest PaymentTotal Interest
30 Years$700,0003.75%$3,241$467,297
15 Years$700,003%$4,834$170,136

How is the mortgage process different with a jumbo loan?

The steps you’ll take to qualify for a jumbo mortgage are similar to what you’d go through for other types of mortgages. You’ll need to go through a credit check, verify your income, and have the property appraised. But because the bank is issuing a much larger loan, the lending guidelines will be more strict.

Along with needing more income to cover the larger monthly payment, you may need cash reserves to cover 12 to 18 months of payments. When you add in the down payment and closing costs, it wouldn’t be unreasonable for a jumbo loan to require the borrower to have well over $100,000 in cash to qualify for the loan.

How do I find the best jumbo mortgage rate?

Finding the best jumbo mortgage rates is a matter of shopping for the best lender. However, not all lenders offer jumbo loans, and it could involve more research to compare rates and find the best deal.

Finding the lowest possible rate for a jumbo mortgage can save you more compared to conventional loans because these loans are so large. On a $700,000 30-year loan, just a 0.12% interest rate reduction would save you roughly $45 a month and $16,000 over the life of the loan.

When you compare rates, also pay attention to discount points the lender may have built into the rate. A discount point is an upfront fee charged in exchange for a lower rate. For jumbo loans these fees can end up being quite expensive. Although the savings can outweigh the extra expense over the long haul, you’ll want to know what fees you’re paying, so you can see if it makes sense for your situation.

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