JUMBO
Rate and Term Refinance

A jumbo rate and term refinance mortgage loan is a type of refinance mortgage that is designed for borrowers who need to refinance a mortgage that exceeds the conforming loan limits set by Fannie Mae and Freddie Mac. These limits vary by location, but in most parts of the United States, the conforming loan limit is $766,550 and as much as $1,149,825 for high cost regions.

Jumbo loans, by definition, exceed these limits and are considered non-conforming loans. As a result, jumbo rate and term refinance mortgage loans typically have higher interest rates and more stringent lending requirements compared to conforming loans.

The purpose of a jumbo rate and term refinance mortgage loan is to replace an existing mortgage with a new one that has a different interest rate, loan term, or both. This can be advantageous for borrowers who are facing higher interest rates on their current mortgage, or who want to take advantage of falling interest rates to secure a lower monthly payment.

Common reasons for refinancing a jumbo mortgage:

Lowering the interest rate
Refinancing can help borrowers save money by lowering their interest rate, which can reduce their monthly payments and overall cost of borrowing.

Extending the loan term
Refinancing can help borrowers extend their loan term, which can lower their monthly payments by spreading the repayment over a longer period.

Switching from an adjustable-rate to a fixed-rate mortgage
Some borrowers may want to refinance from an adjustable-rate mortgage (ARM) to a fixed-rate mortgage to lock in a stable interest rate and avoid potential rate increases.

A Jumbo Rate and Term Refinance is a valuable option for borrowers with high-balance loans looking to lower their interest rate or modify their loan term. This refinancing option suits those aiming for long-term interest savings, reduced monthly payments, or quicker loan payoff. However, because it often requires higher credit scores and equity, borrowers should confirm they meet the eligibility criteria and thoroughly understand the benefits of refinancing a large mortgage.