best jumbo refinance rates explained and how to qualify

What drives jumbo pricing

Jumbo loans exceed conforming limits, so lenders price them with extra scrutiny. The best jumbo refinance rates typically go to borrowers with high credit scores, ample reserves, and low loan-to-value ratios.

• Credit score: 760+ often unlocks top tiers.
• Equity: LTV at or below 70-80% can shave pricing.
• Reserves: 12–24 months of payments shows strength.
• Property type: Primary homes price better than second homes or investment units.

How the refinance process works

Lenders start with market benchmarks, then add adjustments for risk, loan size, and features like interest-only or cash-out.

1. Pre-qualify to understand target rate and costs.
2. Lock timing: watch treasury and MBS moves before commitment.
3. Appraisal and underwriting verify income, assets, and collateral.
4. Clear conditions, review the Closing Disclosure, then sign.

Tips to secure a lower rate

Shop at least three lenders, request a loan estimate, and compare APR and points. Consider paying points if you expect a long hold period, and shorten the term when cash flow allows. If rates slip after locking, ask about a float-down.