Jumbo Mortgage Rates for January 2022

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Your home can be jumbo size, but that doesn’t mean your interest rate has to be jumbo, too. 

Today’s jumbo rates are considered exceptionally low from a historical perspective. But towards the end of 2021 and into 2022, experts predict these rates to slowly trend upward. 

What Is a Jumbo Loan?

A jumbo loan is a mortgage that allows you to buy a home with a value that exceeds the maximum conforming loan limits set by the Federal Housing Finance Agency (FHFA). Jumbo loans require larger down payments and typically have higher interest rates. Lenders will look at income, credit score, and credit history. But the qualifications for jumbo loans are stricter than traditional loan requirements. 

What the Experts Are Saying About 2021 Jumbo Rates

A number of factors influence mortgage rates. Growing concerns over rising inflation and the Omicron variant of COVID-19 have been pushing and pulling rates up and down. The most recent consumer price index reported the largest inflation surge in 39 years. But the supply chain issues currently pushing inflation up are believed to be temporary. However even with this uncertainty, Federal Reserve Chairman Jerome Powell’s latest announcement offers new support for what experts have long forecasted: Mortgage rates will continue to rise into 2022.

In the coming months, “I think we’re gonna see interest rates going up,” says Kerry Melcher, head of real estate at Opendoor, an online residential real estate platform. The Federal Reserve has already begun unwinding it’s low-rate policies and could accelerate the process of rising rates if high inflation is sustained longer than anticipated. Barring something unexpected, rates are expected to slowly increase well into 2022.

What the 2021 Jumbo Rate Forecast Means for You

Whether or not to buy a home is a complicated decision that depends on much more than just the interest rate you can qualify for. Your rate shouldn’t be the main driver in your decision to buy a home, but your interest rate will affect your monthly payment and impact how much house you can afford. And home values have been increasing, so you’ll want to pay close attention to how much of your income is going toward housing.

Although rates are up from their all-time lows, they “are still great,” Melcher says. Even if rates rise moderately, as they are expected to do, you’ll still be able to find historically low rates. “But, it does impact your buying power.” So you may need to adjust your homebuying budget to account for increases in both home values and interest rates. Keep in mind that in 2022 the FHFA Conforming Loan Limits will be increasing. If you’re borrowing less than these limits, then you won’t need to take out a jumbo loan. 

What Are Today’s Jumbo Mortgage Rates?

On Sunday, January 02, 2022 according to Bankrate’s latest survey of the nation’s largest mortgage lenders, the average 30-year jumbo mortgage rate is 3.260% with an APR of 3.360%. The average 15-year jumbo mortgage rate is 2.560% with an APR of 2.630%.

Current Jumbo Mortgage Rates

Product Interest Rate APR
30-Year Fixed Rate 3.250% 3.350%
30-Year FHA Rate 2.860% 3.750%
30-Year VA Rate 2.850% 3.060%
30-Year Fixed Jumbo Rate 3.250% 3.310%
20-Year Fixed Rate 3.150% 3.230%
15-Year Fixed Rate 2.510% 2.660%
15-Year Fixed Jumbo Rate 2.510% 2.570%
5/1 ARM Rate 2.700% 3.990%
5/1 ARM Jumbo Rate 2.670% 3.690%
7/1 ARM Rate 3.150% 3.870%
7/1 ARM Jumbo Rate 3.380% 3.720%
10/1 ARM Rate 3.470% 4.000%
Product Interest Rate APR
30-Year Fixed Rate 3.270% 3.410%
30-Year FHA Rate 2.780% 3.660%
30-Year VA Rate 2.820% 2.980%
30-Year Fixed Jumbo Rate 3.260% 3.360%
20-Year Fixed Rate 3.110% 3.230%
15-Year Fixed Rate 2.540% 2.760%
15-Year Fixed Jumbo Rate 2.560% 2.630%
5/1 ARM Rate 2.740% 4.070%
5/1 ARM Jumbo Rate 2.800% 4.040%
7/1 ARM Rate 3.090% 3.870%
7/1 ARM Jumbo Rate 3.410% 3.790%
10/1 ARM Rate 3.380% 3.980%

Rates as of Sunday, January 02, 2022


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 Loans: Frequently Asked Questions (FAQ)

What is the 2021 jumbo loan limit?

The baseline FHFA conforming loan limit for 2021 is $548,250 for single-unit homes. In certain high-cost areas, that limit increases to a maximum of $822,375. The loan limit varies by county and you can see the limit for your area using the FHFA’s conforming loan limits map.

The conforming loan limits for multi-unit properties are higher and top out at $1,472,550 for 4-unit properties located in high-cost areas. Any property with more than four units is considered a commercial property and requires a commercial mortgage.

What are qualifications for a jumbo loan?

Qualifying for a jumbo loan is more difficult than getting a conventional mortgage. The specific jumbo loan lending guidelines vary by lender, but you’ll need a bigger down payment, and much higher credit score.

With a typical conventional mortgage you may be able to qualify with a credit score of 650 or higher. That’s not the case with jumbo loans, where a minimum credit score of 700+ typically is required. Some conventional loans allow you to purchase a home with only 3% down. But a standard down payment for a jumbo loan starts at 10% and can be as much as 40% of the purchase price.


When should I consider a jumbo mortgage?

Jumbo loans are popular choices for investment properties and vacation homes as they tend to be more expensive. They are difficult to get because not every lender offers them. The bigger the loan, the riskier it is for the lender. Be aware of the stricter requirements when searching for a jumbo loan. 

What are the benefits of a jumbo loan?

The main benefit to a jumbo loan is you can borrow more money and buy into a more expensive home. Jumbo loans allow the borrower to buy a property that they may not have been able to get with a conventional loan. 

What’s the difference between a 15-year and a 30-year jumbo loan?

Shorter term, 15-year mortgages typically have lower interest rates, and because you’re paying off the loan sooner, you’ll pay much less interest overall. For 30-year repayment terms, you’ll have much lower and more affordable monthly payments

By definition, jumbo loans are for much larger amounts, and that means that the differences between a 15-year and 30-year loan are much more pronounced. As you can see, a 15-year loan could cost you nearly $1,600 a month more but save you almost $300,000 over the life of the loan:

Loan Term Loan Amount Interest Rate Monthly Principal & Interest Payment Total Interest
30 Years $700,000 3.75% $3,241 $467,297
15 Years $700,00 3% $4,834 $170,136

How is the mortgage process different with a jumbo loan?

The steps you’ll take to qualify for a jumbo mortgage are similar to what you’d go through for other types of mortgages. You’ll need to go through a credit check, verify your income, and have the property appraised. But because the bank is issuing a much larger loan, the lending guidelines will be more strict.

Along with needing more income to cover the larger monthly payment, you may need cash reserves to cover 12 to 18 months of payments. When you add in the down payment and closing costs, it wouldn’t be unreasonable for a jumbo loan to require the borrower to have well over $100,000 in cash to qualify for the loan.

How do I find the best jumbo mortgage rate?

Finding the best jumbo mortgage rates is a matter of shopping for the best lender. However, not all lenders offer jumbo loans, and it could involve more research to compare rates and find the best deal.

Finding the lowest possible rate for a jumbo mortgage can save you more compared to conventional loans because these loans are so large. On a $700,000 30-year loan, just a 0.12% interest rate reduction would save you roughly $45 a month and $16,000 over the life of the loan.

When you compare rates, also pay attention to discount points the lender may have built into the rate. A discount point is an upfront fee charged in exchange for a lower rate. For jumbo loans these fees can end up being quite expensive. Although the savings can outweigh the extra expense over the long haul, you’ll want to know what fees you’re paying, so you can see if it makes sense for your situation.


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