Jumbo Mortgage Refinance Rates for January 2023

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Expensive homes require a jumbo mortgage. But that doesn’t mean your interest rate has to be jumbo. 

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Mortgage rates have been on the rise in early 2022, which is in line with what experts predicted. However, jumbo refinance rates are still considered favorable from a historical perspective.

Here’s what you need to know.

Expert Take on Current Jumbo Refinance Rates

Mortgage rates are expected to move around as different factors tug at the market. Pushing them up are factors like inflation, which at 7.9% in February was the highest in 40 years, and anticipation that the Federal Reserve will raise its short-term interest rate to combat that inflation. The Russian invasion of Ukraine has brought new uncertainty to financial markets, causing bigger swings on a daily or weekly basis. “Everything depends on what happens everywhere,” says Linda McCoy, board president of the National Association of Mortgage Brokers. “Too many variables can change the rates. Too many things can happen.”

Generally, experts expect rates will rise throughout 2022, although with plenty of ups and downs along the way. More certainty might come once the Fed begins raising rates, which is expected to start this month. “Once we see [the Fed’s] first move, you might see much less volatility,” says Jennifer Beeston, senior vice president of mortgage lending at Guaranteed Rate. “If the Ukraine war wasn’t going on, I would be estimating that next week would even things out. But with the Ukraine war I think we’re going to keep on seeing these swings.”

History of the 30-Year Fixed Mortgage Rate

This chart tracks the 30-year fixed mortgage rate, which differs from the jumbo refinance rate. However, all rates typically follows a similar track. This makes the history of the 30-year fixed rate useful since it can provide a snapshot of how today’s jumbo refi rates compare with the past two decades. This chart uses data from a survey by Freddie Mac that differs slightly but generally tracks with the Bankrate survey used by NextAdvisor. Following the history of the 30-year fixed mortgage rate illustrates that while mortgage rates are up from the record lows of the past two years, they still aren’t very high by historic standards. In the past two decades, rates as high as 8% are not unheard of. 

Remember that while rates are still favorable for homebuyers, what’s most important for refinancing is what rate your existing mortgage has. If you took out a mortgage when rates were 5% or higher, you could stand to save significant money if you refinanced into a new loan with a rate around 0.75%-1% lower. 

What Today’s Jumbo Refinance Rates Means for You

If you’re looking to refinance to save money by getting a lower interest rate, you can still do so if your current rate is higher than what you’d be able to get on the market today. “​​If you can lower your rate, regardless of what’s going on in the market, and it’s going to save you money, cool,” Beeston says.

Today’s jumbo refinance rates could be significantly lower than your current interest rate. For anyone with a larger jumbo loan, the total dollar amount you save can be significant, even with a modest drop in your interest rate.

Each year, the loan limits for conventional loans are adjusted. For 2022, they’ve increased to $647,200 for single-family properties in most areas. If you originally took out a jumbo loan, but now your loan amount is below the threshold for a jumbo refinance, you may be able to switch from a jumbo loan to a conventional loan. Conventional loans almost always offer lower interest rates than jumbo loans. So refinancing to a conventional loan could dramatically reduce your mortgage rate and monthly payments.

Here’s an example of what a homeowner could save by refinancing. If a homeowner has been paying off a $700,000, 30-year jumbo mortgage at 4.5% for four years, they would have roughly $650,560 left to pay. Here’s what that homeowner could save by refinancing to a lower jumbo interest rate.

Loan TermInterest RateMonthly Mortgage & Interest PaymentTotal Interest Remaining
30 Years (26 years remaining)4.5%$3,546$452,851
30 Years4%$3,105$467,846
30 Years3.5%$2,921$401,194

For mortgages with large balances like with jumbo loans, extending your repayment term and cutting your interest rate can significantly reduce your monthly payment. In the above scenario a 0.5% rate reduction drops the monthly payment by $441. However, be aware that you are adding extra years onto your loan if you refinance into a new 30-year loan.

What Are Today’s Jumbo Refi Rates?

On Thursday, January 26, 2023 according to Bankrate’s latest survey of the nation’s largest mortgage lenders, the average 30-year jumbo refinance rate is 6.500% with an APR of 6.510%. The average 15-year jumbo refinance rate is 5.740% with an APR of 5.760%.

Current Jumbo Refinance Rates

ProductInterest RateAPR
30-Year Fixed Rate6.470%6.490%
30-Year FHA Rate5.830%6.740%
30-Year VA Rate5.840%6.040%
30-Year Fixed Jumbo Rate6.500%6.510%
20-Year Fixed Rate6.360%6.380%
15-Year Fixed Rate5.690%5.720%
15-Year Fixed Jumbo Rate5.740%5.760%
5/1 ARM Rate5.340%7.170%
5/1 ARM Jumbo Rate5.370%6.910%
7/1 ARM Rate5.770%7.120%
7/1 ARM Jumbo Rate6.030%6.750%
10/1 ARM Rate6.280%6.840%
ProductInterest RateAPR
30-Year Fixed Rate6.430%6.440%
30-Year FHA Rate5.790%6.690%
30-Year VA Rate5.860%5.980%
30-Year Fixed Jumbo Rate6.440%6.450%
20-Year Fixed Rate6.430%6.450%
15-Year Fixed Rate5.650%5.680%
15-Year Fixed Jumbo Rate5.720%5.740%
5/1 ARM Rate5.420%7.410%
5/1 ARM Jumbo Rate5.490%7.400%
7/1 ARM Rate5.960%6.860%
7/1 ARM Jumbo Rate6.240%6.460%
10/1 ARM Rate6.320%6.800%

Rates as of Thursday, January 26, 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 Loan Refinance: Frequently Asked Questions (FAQ)

How do I find the best jumbo refinance rates?

To find the best jumbo refinance rates, you’ll need to shop around. But shopping for a jumbo refinance might not be as easy as refinancing a conventional loan because not all mortgage lenders offer jumbo loans. So you’ll have to do some research to find lenders to compare refinance rates with.

Once you’ve found a few lenders who offer jumbo loan refinancing, you’ll need to provide each with basic information to get pre-approved for the loan or to get a ballpark estimate of interest rates. To get a full Loan Estimate, with more detailed rates and fees, you will need to submit an application with a few lenders. Once you have two to three Loan Estimates, you can easily compare rates and fees to find the best deal.

The best jumbo refinance loan for you may not be the one with the lowest quoted interest rates. The upfront closing costs are important to pay attention to. A loan with a lower interest rate could have hundreds or thousands of dollars in additional fees.

What are the 2022 jumbo loan limits?

Jumbo loan limits vary by county but are higher in areas with elevated home values. The conforming loan limits for single-family homes in 2022 are:

  • $647,200 for most of the U.S.
  • $970,800 for high-cost areas, such as New York City, Los Angeles, and Washington, D.C.

Loans larger than these thresholds are considered jumbo loans. Head over to the Federal Housing Finance Agency to find the 2022 conforming loan limits in your area. 

How do I refinance a jumbo loan?

Refinancing a jumbo mortgage follows the same process as a standard home loan refinance. However, there is one key difference: You’ll have to meet higher lending standards because the loan is more risky since it’s not backed by Fannie Mae, Freddie Mac, or the federal government.

Here are the steps you should take if you’re interested in refinancing a jumbo loan, which is any mortgage that’s larger than the conforming loan limits set each year by the Federal Housing Finance Agency.

  1. Make sure you qualify

You’ll need a high credit score to refinance a jumbo mortgage, typically 700 at minimum, though many lenders require scores higher than that. You’ll also need substantial income and large cash reserves. Your debt-to-income ratio (DTI) will need to be lower than what’s required with other types of financing, typically a DTI of 36% to 43% is the maximum for a jumbo refinance. You’ll also usually need enough cash to cover 6 to 12 months of monthly payments.

Although it will vary by lender, many jumbo refinance loans require at least 20% equity in the property. However, to qualify for the best refinance rates, you may need to have even more equity. This can be a challenge if you are doing a cash-out refinance.

  1. Shop around for the best deal

To find the best deal, you’ll need to compare mortgage lenders. While your financial situation has a big impact on the rates you’ll qualify for, each lender will evaluate you differently. So it’s important to get a few offers to compare to ensure you’re getting the best combination of rates, fees, and terms.

  1. Collect your documentation

During the mortgage underwriting process, your lender will verify all of your financial information. So you need to be prepared to provide the following:

  • Proof of income: W-2, 1099s, pay stubs, or tax returns
  • Proof of assets: Bank accounts, stocks, bonds, retirement accounts
  • Statement of debts: Student loans, auto loan, credit cards
  • Proof of insurance: Homeowners insurance, title insurance
  1. Close on your new jumbo mortgage

Just like with a purchase mortgage, a refinance loan will go through a closing process. During this process, the lender will validate your ability to repay the loan and confirm the property’s value with an appraisal. The closing process usually takes 30 to 45 days for a mortgage refinance.

When should I refinance a jumbo loan?

The best time to refinance a jumbo loan is when it can help you achieve your financial goals. Common reasons to refinance include lowering your interest rate, cashing out your equity or changing your repayment term. With a lower rate you can pay off the loan more quickly or significantly reduce your monthly payment. A cash-out refinance could allow you to consolidate high interest debt or to finance home improvements.

How do closing costs work with a jumbo refinance?

When considering a jumbo mortgage refinance, you should look at the long-term and short-term costs. So the interest rate and repayment term are important, but they’re not the only things to consider.

Lenders charge upfront fees for a refinance loan of 3% to 6%, which is a sizable sum for a large jumbo loan. If you have plans to move in the near future, these upfront costs may outweigh the potential savings. To ensure that refinancing makes sense, use NextAdvisor’s mortgage refinance calculator to run the numbers.

When thinking about refinancing, how long you want to be responsible for paying a mortgage should factor into the equation. If you’ve already been paying on your existing 30-year mortgage for 10 years, you may not want to refinance into a new 30-year loan. Not only would you be adding 10 years onto your mortgage, but you could end up paying more interest over time.


What is a jumbo loan?

A jumbo loan is a mortgage that allows you to buy or refinance a home with a value that exceeds the maximum limits set by Fannie Mae and Freddie Mac. They require larger down payments and typically have higher interest rates. When refinancing a jumbo loan, the process works similar to a traditional refinance: A new loan will replace the old with new terms and rates. Lenders will look at income, credit score, and credit history. But the qualifications for jumbo refinance loans are stricter than traditional loan requirements.

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