Jumbo Loan Calculator

A jumbo loan is a mortgage that exceeds the FHFA conforming loan limit, which is $806,500 for most US counties in 2025. Because these loans exceed the limit, Fannie Mae and Freddie Mac cannot purchase them, so lenders keep them in their own portfolios. This means stricter qualification standards including higher credit scores, larger down payments, and lower debt-to-income ratios.

The Federal Housing Finance Agency (FHFA) set the 2025 baseline conforming loan limit at $806,500 for single-family properties in most US counties. High-cost areas such as San Francisco, New York City, and Los Angeles have higher limits up to $1,209,750. Any mortgage above the applicable county limit is classified as jumbo.

Most jumbo lenders require a minimum credit score of 700 to 720, with 740 or above needed for the best rates. A few portfolio lenders will approve scores as low as 680 with compensating factors such as large reserves or a low LTV. This is significantly stricter than conventional loans, which allow scores as low as 620.

Most jumbo lenders require at least 10% down, and 20% is the standard to avoid additional risk pricing. Some lenders offer jumbo loans with as little as 5% down for highly qualified borrowers, though this typically requires a higher credit score and stronger reserves. Unlike FHA or conventional loans, jumbo mortgages do not carry private mortgage insurance (PMI) in the traditional sense, but some lenders charge a rate premium for low down payments.

At a 7.25% rate for 30 years, a $1 million jumbo loan requires a monthly payment of about $6,825. Using the 28% front-end DTI rule, you would need at least $24,375 per month ($292,500 annually) before other debts. With existing monthly debt obligations of $1,000, you would need roughly $313,000 per year using the 43% back-end DTI rule. The exact figure depends on your rate and existing debts.

Jumbo rates have historically been 0.25 to 0.50 percentage points above conforming rates, though the spread has occasionally turned negative during periods of high mortgage demand. As of 2025, jumbo rates on a 30-year fixed loan typically run between 7.0% and 8.0% depending on creditworthiness, loan size, and lender. On a $1 million loan, a 0.25% rate difference adds roughly $30,000 in total interest over 30 years.

Most jumbo lenders cap back-end debt-to-income ratio at 43%, though some strict portfolio lenders set the limit at 36% to 38%. Front-end (housing-only) DTI is typically capped at 28%. This calculator applies the standard 43% back-end and 28% front-end limits and uses the lower resulting maximum payment, which gives you a conservative and commonly approved qualification estimate.

Yes, 10% down jumbo loans are available from many banks and credit unions, particularly for borrowers with credit scores above 720 and documented reserves. The tradeoff is a slightly higher interest rate, typically 0.125 to 0.25 percentage points above what you would get with 20% down. Some lenders also require splitting the loan into a first mortgage plus a HELOC to avoid the jumbo classification entirely.

Jumbo loan closing costs typically run 2% to 3% of the loan amount, similar to conforming loans. On a $1.2 million loan, expect to pay $24,000 to $36,000 in closing costs covering origination fees, appraisal (often $1,000 to $2,500 for high-value properties), title insurance, and escrow. Jumbo appraisals frequently require two independent appraisals due to the higher loan amounts.

Yes, jumbo loan refinancing works the same as for conforming loans. You can refinance to a lower rate, change your term, or switch from adjustable to fixed. The same qualification requirements apply: you will need a credit score above 700, sufficient income, low DTI, and adequate equity. The break-even period depends on closing costs and your monthly savings, just as with any refinance.

Loan term dramatically affects total cost. On a $1 million jumbo at 7.25%, a 30-year term produces a $6,825 monthly payment with about $1,457,000 in total interest. A 15-year term raises the payment to roughly $9,096 but cuts total interest to about $637,000, saving more than $820,000 over the life of the loan. The shorter term also builds equity faster, which matters for a high-value property.

Yes, jumbo loans are available for investment properties and second homes, but the requirements are stricter. Investment property jumbo loans typically require 20 to 30% down, a credit score above 720, and cash reserves of 12 months or more. Interest rates on investment property jumbo loans are usually 0.5 to 1.0 percentage points above primary residence rates due to the increased default risk.