Jumbo Mortgage Rates: Maybe you have jumbo mortgage on your radar? It is on your radar since you intend to purchase a luxury home or refinance a high-value home. However, it is needed to be aware of current rates and whether its good to fix something now before jumping in.
Here are the latest jumbo mortgage rates as of August 7, 2025:
| Loan Type | Purchase | Refinance |
|---|---|---|
| Jumbo 30-Year Fixed | 6.76% | 6.79% |
| Jumbo 15-Year Fixed | 6.36% | 6.21% |
| Jumbo 7/6 ARM | 7.13% | 6.86% |
| Jumbo 5/6 ARM | 7.15% | 7.12% |
These aren’t teaser rates but more realistic numbers based on your credit score, income, and loan-to-value ratio.
What Is a Jumbo Mortgage?
A jumbo loan describes a mortgage that is larger than what is limited by the Federal Housing Finance Agency (FHFA). Availability of Fannie Mae, and Freddie Mac to purchase such loans adds some riskiness to the loans as lenders.
For 2025, the conforming loan limits are:
- $806,500 for single-family homes in most areas
- $1,209,750 in high-cost regions
If your loan amount is above these thresholds, you’ll need a jumbo mortgage.
Are Jumbo Mortgage Rates Always Higher?
Since there is an added risk to the lenders, the jumbo mortgage interest rates are slightly higher as compared to the conforming ones. Nevertheless, in certain financial situations and depending on the state of the market, the rates can be highly competitive.
How Do Jumbo Loan Rates Compare with Other Loan Types?
Take a look at national averages for various loan types as of today:
| Loan Type | Purchase | Refinance |
|---|---|---|
| 30-Year Fixed | 6.76% | 6.92% |
| FHA 30-Year Fixed | 7.55% | 7.28% |
| VA 30-Year Fixed | 6.36% | 6.27% |
| 15-Year Fixed | 5.69% | 5.68% |
| Jumbo 30-Year Fixed | 6.76% | 6.79% |
| Jumbo 15-Year Fixed | 6.36% | 6.21% |
These numbers assume a loan-to-value (LTV) ratio of 80% and a FICO score between 700–760.
Does the Federal Reserve Set Mortgage Rates?
The Fed does not have direct control over mortgage rates, but its actions have a big influence on them. By changing the federal funds rate, the Fed sets interest rates in the economy in general, and mortgages in particular indirectly.
The demands of investors also count. When inflation or swift development is anticipated in the market, the rates will be increased. In case a slackening is expected to occur, then rates can become lower.
How to Qualify for Better Jumbo Loan Rates
To secure the lowest possible jumbo mortgage rate, you’ll need to meet stricter lending criteria:
- A high credit score (typically 700 or above)
- A low debt-to-income (DTI) ratio (below 43%)
- A large down payment (at least 20%)
- Stable and strong income
You can check your credit reports from all three major bureaus at AnnualCreditReport.com. Look for errors and work on paying down debt to improve your score.
What Are Mortgage Points?
Mortgage points are charges that one pays in order to lower his/her interest rate. One point is 1 percent of loan amount and it normally decreases your rate at 0.25 percent.
As an example, a loan secured on 600,000 dollars points paid at 6,000 dollars may knock 0.25% off of your rate. This will result in a big saving during the period of the loan.
How Much Mortgage Can You Afford?
The savvy rule of thumb would be to ensure that the total amount you pay monthly to your housing needs does not exceed 28 percent of your gross monthly earning.
In case you earn 10000 a month then your housing/ mortgage, insurance, taxes, and interest should not exceed 2800.
Is a Jumbo Mortgage the Right Choice?
In case you are purchasing an expensive house and have financial strengths, then jumbo mortgage should be a good choice. However, it is necessary to take into consideration:
- Higher rates and fees
- More stringent approval process
- Higher insurance and maintenance costs
Comparison shopping is always a good idea because it is vital to compare quotes of various lenders. When borrowers obtain at least four quotes, Freddie Mac says, they can save an average of 1,200 a year.
How We Track Jumbo Mortgage Rates
The national averages shown are with the help of Zillow Mortgage API, assuming an LTV that is 80 percent, and credit score of 680, and 739. Such rates are realistic expectations of the borrowers and they could not be the same as the teaser rates.
Braj Verma is a resident of Rajgarh in Madhya Pradesh and is a content writer and freelancer by profession. He has a degree in Political Science from Barkatullah University, Bhopal. He has expertise in subjects like credit cards, banking, loan, insurance, political analysis and digital marketing.