JUMBO
Refinance

A jumbo refinance mortgage loan is a type of refinancing option for borrowers with an existing jumbo loan. Jumbo loans are mortgages that exceed the conforming loan limits set by the Federal Housing Finance Agency (FHFA) and are typically used to finance high-value properties in areas with elevated housing prices. Since these loans are above conventional limits, they carry higher risk and are not eligible for purchase by government-sponsored entities like Fannie Mae or Freddie Mac.

A jumbo refinance loan lets borrowers replace their existing high-balance mortgage with a new one, potentially at a lower interest rate, with different loan terms, or to switch from an adjustable-rate to a fixed-rate mortgage. This can be advantageous in reducing monthly payments, accessing equity for cash-out needs, or altering the loan’s duration.

Types of Jumbo Refinance Loans

Rate and Term Refinance
This is the most common type and is used to change the interest rate, loan term, or both. It can help reduce monthly payments or shorten the loan term without increasing the loan balance.

Cash-Out Refinance
With this option, borrowers can refinance their mortgage for a larger amount than the current balance and “cash out” the difference. This is often used to access equity for other financial needs like renovations or debt consolidation.

Is a Jumbo Refinance Right for You?

A jumbo refinance can be an excellent choice for homeowners who want to take advantage of favorable interest rates, access equity, or improve their loan terms. However, given the strict qualifications and potentially higher costs, it’s essential to carefully consider whether refinancing a jumbo loan aligns with your financial goals and ability to meet lender requirements.