Best 30-year jumbo home loans charge just 3.25%
In our roundup of July's lowest rates on 30-year jumbo home loans, you'll find several banks offering cut-rate deals on home loans in areas throughout the country.
All of the banks on our list are charging borrowers 3.25% or 3.375%, with no points.
That means you can find a deal that's nearly half of a percentage point below the national average rate for jumbo loans — 3.64%, according to our latest survey of major lenders.
Here are some of the best rates on 30-year jumbo home loans that banks are offering:
Banks: Top jumbo home loan rates
|Bank||Mortgage rate||Fees||States||BBB Rating|
|BB&T Bank||3.25%||$1,170.60||Alabama, District of Columbia, Florida, Indiana, Kentucky, Maryland, New Jersey, North Carolina, Ohio, Pennsylvania, South Carolina, Tennessee, Texas, Virginia, Washington State, West Virginia||A+|
|TD Bank||3.375%||$993.45||Connecticut, Delaware, District of Columbia, Florida, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, North Carolina, Pennsylvania, Rhode Island, South Carolina, Virginia, Vermont||A+|
|Key Bank||3.375%||$901.00||Alaska, Colorado, Idaho, Indiana, Maine, Michigan, New York, Ohio, Oregon, Utah, Vermont, Washington State||A+|
|Investors Home Mortgage||3.375%||$1,090.00||Connecticut, Delaware, Florida, New Jersey, New York, North Carolina, Pennsylvania||A-|
|Lisle Savings Bank||3.375%||$812.00||Illinois||A+|
|Liberty Bank for Savings||3.375%||$999.00||Illinois||A+|
|Fifth Third Bank||3.375%||$950.00||Florida, Georgia, Illinois, Indiana, Kentucky, Michigan, North Carolina, Ohio, Tennessee, West Virginia||A+|
|Amalgamated Bank||3.375%||$1,524.00||District of Columbia, California, New York||A+|
Credit Unions: Top jumbo loan rates
While banks large and small are offering great rates on jumbo mortgages, it's worth checking at credit unions as well.
One of the best deals on 30-year jumbo home loans from a credit union is from Teachers Federal Credit Union which is offering jumbo loans at 3.25% with $2,086 in fees.
Based in Farmingville, New York, and unrated by the Better Business Bureau, membership is open to borrowers who live, work (or regularly conduct business), worship or attend school in Nassau County, New York, and some parts of Suffolk County, New York. You can apply in person or online.
What are jumbo home loans?
Jumbo loans are mortgages that are too large to be purchased by Fannie Mae and Freddie Mac, the two government-owned companies that buy most of the mortgages issued by banks and other lenders.
The largest loans they can buy depend on where the home is located but range from $417,000 in most places to $625,500 in the nation's most expensive cities. If you need to borrow more than that, then you'll need a jumbo loan.
Finding the best mortgage rates
Even if you don't live in the areas served by these lenders, their low rates and fees provide a great blueprint to follow. Find a deal like these in your neck of the woods, and you'll know you've found a great one.
Get started by searching Bankrate’s database for the best mortgage rates from scores of other lenders in your area.
What you'll pay
For a jumbo loan with a rate of 3.250%, the lowest rate listed above, the principal and interest payment would be just $435 a month for every $100,000 borrowed, or $3,482 on a $800,000 loan.
With a rate of 3.375%, which is what most of the lenders shown here are charging, your principal and interest payment would be $442 a month for every $100,000 borrowed, or $3,537 on a $800,000 loan.
You can use our mortgage calculator to determine the monthly payment for the exact amount you want to borrow with this or any home loan.
Although mortgage rates have defied all predictions and jumbo loan rates are the lowest we've seen this year thanks to the Federal Reserve continuing to keep interest rates low and Great Britain's decision to exit the European Union, it's a pretty safe bet that rates will move higher in the next few years.
And don't forget to factor insurance, property taxes and association fees into the payment, which can really bump up your monthly housing cost.
Borrowing requirements vary by lender, but to qualify for these low rates, you'll typically need to:
- Borrow more than $417,000 in most areas, or more than $625,500 in high-cost areas.
- Have a credit score of 740 or better.
- Be buying a home or refinancing no more than the outstanding balance of your current home loan.
- Make a down payment of at least 20% if you're buying.
- Hold 20% or more of the equity in your home if you're refinancing.
In addition, some lenders may require you to maintain an escrow account for property taxes and homeowners insurance to get the best interest rate.
Keep in mind that you don't want to drain your savings and take on mortgage payments that you'll struggle to afford every month. Here's how to figure out how much house you can afford.