Jumbo Loan Calculator
Calculate payments for mortgages exceeding conforming loan limits ($766,550+). Jumbo loans require higher credit scores, larger down payments, and more reserves than conventional loans.
Why Use This Calculator?
Calculate Above Conforming Loan Limits
2024 conforming limit: $766,550 (most counties), $1,149,825 high-cost (SF, NYC, LA). $900k home needs jumbo loan. 20% down ($180k) = $720k loan @ 7.125% = $4,848/month vs conforming $766k @ 6.875% = $5,042. Jumbo rates 0.25-0.5% higher but larger loan. Calculator shows jumbo thresholds by county and payment differences above limits.
Model Higher Down Payment Requirements
Conforming allows 3% down. Jumbo requires 10-20% minimum (lender-dependent). $1.2M home: 10% down = $120k, 20% = $240k. With $120k: $1.08M jumbo loan @ 7.25% + higher rate for <20% = $7,365/month. With $240k: $960k @ 7% = $6,383/month (save $982/month). Extra $120k down reduces payment 13% + better rate = significant savings.
Account for Stricter Credit Requirements
Conforming accepts 620 score, 43% DTI. Jumbo needs 700+ score, 38-43% DTI (varies by lender), 12-24 months reserves. $800k loan with 680 score = denied jumbo, need conventional split ($766k conforming + $34k second mortgage). 740+ score qualifies most jumbos. Calculator shows qualification thresholds = know eligibility before shopping.
Compare Jumbo vs Conforming + Second Mortgage
$900k purchase, $180k down (20%) = $720k loan. Option A: Single jumbo $720k @ 7.125% = $4,848/month. Option B: Conforming $766k (over-borrow) impossible. Option C: 80-10-10 structure not viable. Jumbo is only option above limits with 20% down. But with 10% down: could split into conforming + HELOC (complex). Calculator models alternatives.
Calculate Reserve Requirements Impact
Jumbo lender requires 12 months PITI reserves: $5,000 P&I + $1,200 tax + $150 insurance = $6,350 monthly × 12 = $76,200 liquid assets AFTER closing. Have $300k total: $240k down + $20k closing + $76k reserves = $336k needed (short $36k). Need lower price ($1M = $260k cash needed) or more down payment time. Reserves = major jumbo hurdle.
Model Cash-Out Refinance on High-Value Homes
$1.5M home, $800k jumbo loan balance, want $200k cash-out. New loan: $1M ($800k + $200k) @ 7.25% = $6,822/month (was $5,393 @ 7%). Jumbo cash-out requires 70-80% max LTV (vs 80-90% conforming). $1.5M × 80% = $1.2M max loan. Can pull $400k total ($200k now + keep $200k equity). Calculator shows jumbo cash-out limits and payment impacts.
Step-by-Step Guide
Determine Your County Conforming Loan Limit
2024 baseline: $766,550 (most US counties). High-cost counties (CA, NY, CO, HI): up to $1,149,825. Above limit = jumbo loan required. Example: San Francisco $1,149,825 limit, $1.2M home needs $50k over = jumbo. Oklahoma $766,550 limit, $800k home needs $33k over = jumbo. Check FHFA.gov for your county limit. Buying $766,500 conforming vs $766,600 jumbo = huge difference in terms.
Example:
Example: Los Angeles $1,149,825 limit, $1.3M purchase = $150k jumbo portion
Calculate Required Down Payment (Typically 20%)
$1M home, jumbo lender requires 20% down = $200k cash needed + $30k closing costs (3%) = $230k total. Some lenders allow 10% down ($100k) but charge higher rate (7.5% vs 7%) and require PMI on jumbo (rare, expensive). 20% down = best rate, no PMI, easier approval. Jumbo buyers typically have significant assets = 20% down standard.
Example:
Example: $1.5M home × 20% = $300k down + $45k closing = $345k cash to close
Check Credit Score for Jumbo Qualification
Jumbo minimum 680-700 score (lender-specific). Best rates: 740+. $1M loan @ 740 score = 7% vs 720 score = 7.375% vs 680 score = 8% (if approved). 0.375% difference on $1M = $312/month ($112,320 over 30 years). Improve score before applying: pay cards to <10%, dispute errors, wait 3-6 months. Score boost from 710 to 750 = save $150k interest lifetime.
Example:
Example: 760 score gets 6.875% jumbo rate, 700 score gets 7.5% (0.625% penalty)
Calculate Debt-to-Income Ratio for Jumbo
$250k annual income = $20,833 monthly gross. Jumbo lender max 43% DTI: $20,833 × 43% = $8,958 max debts. Existing debts: $2,000 car + $800 student loan = $2,800. Available for housing: $8,958 - $2,800 = $6,158. $6,158 @ 7% = $923k loan = $1.15M home with 20% down. Higher income = higher jumbo loan amount. Some lenders cap at 38% DTI = $5,116 housing only.
Example:
Example: $300k income, 40% DTI, $1,500 debts = $10,500 housing = $1.57M loan @ 7%
Verify Liquid Reserve Requirements (6-24 Months)
Jumbo lender requires 12 months reserves: $7,200 P&I + $1,800 tax + $200 insurance = $9,200 monthly × 12 = $110,400 in liquid assets AFTER closing. Liquid = checking, savings, stocks (70% counted), bonds. 401k/IRA not counted unless retired. Have $400k: $240k down + $36k closing + $110k reserves = $386k (have $14k cushion). Insufficient reserves = denied regardless of income.
Example:
Example: $2M loan needs $15k/mo PITI × 24 months = $360k reserves (ultra-jumbo)
Calculate Jumbo Rate Premium vs Conforming
$766,550 conforming @ 6.75% = $4,969/month. $800k jumbo @ 7.125% = $5,395 ($426 more). $33,450 extra loan costs $426/month = 1.27% of loan. But $800k conforming (if existed) @ 6.75% = $5,188. Actual jumbo premium: $5,395 - $5,188 = $207/month = 0.375% rate penalty. Jumbo rate premium 0.25-0.75% typical depending on amount, credit, LTV.
Example:
Example: $1M jumbo @ 7.25% vs theoretical $1M conforming @ 6.875% = $280/mo premium
Decide Between Jumbo and Conforming + Second Loan
$850k home, $170k down (20%) = $680k loan needed. Option A: Single jumbo $680k @ 7% = $4,521/month. Option B: Conforming $766k max (over-borrow impossible). Jumbo only realistic option. But if buying $900k with $90k down (10%): Option A: $810k jumbo @ 7.5% (low down penalty) = $5,665. Option B: Two loans complex. Jumbo typically simpler above $800k.
Example:
Example: $1.2M home, 80-10-10 not viable, jumbo loan required for any down payment
Understand Jumbo ARM vs Fixed Trade-Offs
$1M jumbo loan: 30-year fixed @ 7% = $6,653/month. 7/1 ARM @ 5.75% initial = $5,836 (save $817/month for 7 years = $68,628 total). Year 8: rate adjusts to 7.75% (2% cap) = $7,230 ($577 more than fixed). Break-even: if selling/refinancing within 7-10 years = ARM wins. Staying 15+ years = fixed safer. Jumbo ARMs more common than conforming due to wealthy buyers' shorter horizons.
Example:
Example: $1.5M jumbo 5/1 ARM @ 6.25% = $9,235, fixed @ 7% = $9,980 (save $745/mo for 5 years)
Calculate Impact of Additional Down Payment
$1.2M home: 20% down ($240k) = $960k jumbo @ 7% = $6,383/month. Have extra $60k, make 25% down ($300k) = $900k loan @ 6.875% (better LTV = lower rate) = $5,917 ($466 less). Extra $60k down saves $466/month = 129 months (10.75 years) to break-even. If staying 15+ years, extra down payment pays for itself. If staying <10 years, invest the $60k instead.
Example:
Example: 30% down gets 6.75% vs 20% gets 7.125% on $1M loan = save $237/mo
Review Jumbo Loan Tax Deduction Limits
$1M jumbo loan: interest deduction capped at $750k loan balance (TCJA 2017). $1M @ 7% = $70k interest year 1, only $52,500 deductible ($750k portion). Lost deduction on $250k × 7% = $17,500 × 24% tax = $4,200/year benefit lost. Jumbo buyers often hit cap. With $1.5M loan, only 50% of interest deductible. Factor reduced tax benefit into jumbo affordability calculation.
Example:
Example: $1.2M loan, $84k interest/year, $63k deductible (cap) = $21k non-deductible
Expert Tips & Strategies
Build 12-24 Month Reserves Before Applying for Jumbo
$1M jumbo needs $8,500/month PITI × 12 months = $102k reserves post-closing. Have $350k: $200k down + $30k closing + $102k reserves = $332k (have $18k cushion). But if only $320k total = denied. Spend 6-12 months building reserves before house hunting: max out savings, liquidate some stocks, bonus/RSU vesting. Reserves = often deciding factor in jumbo approval.
Shop Multiple Jumbo Lenders - Rates Vary Significantly
Jumbo loans not government-backed = each lender sets own terms. Lender A: 7.25%, $2,500 origination, 12-month reserves. Lender B: 6.875%, $5,000 origination, 18-month reserves. Lender C: 7%, $3,000 origination, 9-month reserves. $1M loan: 6.875% vs 7.25% = $246/month ($88,560 lifetime). Shop 5+ lenders for jumbo. Regional banks and credit unions often beat big banks.
Consider Waiting to Build Larger Down Payment
$1M home, have $150k (15% down) = denied by most jumbo lenders (need 20% = $200k). Wait 1 year, save $50k more = $200k (20% down) = approved at better rate. One year of patience: saves $50k to qualify + gets 7% vs 7.75% rate (if approved at 15%) + avoids potential jumbo PMI. Extra $50k down on $1M home = 15% better qualification position.
Improve Credit Score to 740+ for Best Jumbo Rates
720 score = 7.375% jumbo rate. 750 score = 7% rate. $1M loan difference: $6,876/month vs $6,653 = $223/month ($80,280 over 30 years). Six months of credit optimization: pay cards from 30% utilization to 5%, dispute error, add authorized user account = raise score 30 points = save $80k. Jumbo loans reward excellent credit heavily.
Verify County Loan Limit Before Making Offers
Shopping in San Mateo County, CA (high-cost), $1.1M offer. Assumed $1,149,825 limit (standard high-cost). Actual county limit: $1,149,825 = just fits conforming! Saves 0.375% rate = $342/month vs jumbo. Always verify exact county limit. Some counties have special exceptions. $1 difference ($1,149,826 vs $1,149,825) = jumbo loan requirement = $342/month for 30 years.
Don't Forget Higher Closing Costs on Jumbo Loans
$766k conforming: 2.5% closing = $19,150. $1M jumbo: 3-4% closing = $30k-40k. Jumbo costs more: attorney review, enhanced title insurance, jumbo underwriting fee $1,500, higher appraisal $800-1,200. Budget 3.5-4% closing costs for jumbo vs 2.5-3% conforming. $1M home needs $240k cash = $200k down + $40k closing (not $230k).
Use Jumbo ARM if Planning to Move/Refinance in 5-7 Years
$1.2M loan: 30-year fixed @ 7% = $7,983/month. 7/1 ARM @ 5.75% = $7,003 (save $980/month × 84 months = $82,320). Year 8 rate adjusts but you're refinancing or selling. Wealthy jumbo buyers often relocate, upgrade, or pay off early = ARM makes sense. If keeping forever = fixed better. Match loan type to lifestyle timeline.
Calculate Whether Jumbo Even Makes Sense vs Smaller Home
$1.2M home needs $240k down + $36k closing + $144k reserves = $420k cash + $8k/month payment. Alternative: $900k home needs $180k + $27k + $108k = $315k cash + $6k/month. Save $105k upfront + $2k/month = invest difference. $2k/month @ 8% for 30 years = $2.98M. Is $1.2M home worth $2.98M opportunity cost? Many jumbo buyers over-buy.
Common Mistakes to Avoid
✓ Better approach: $1M home, $200k down, $30k closing = $230k cash. Applied for jumbo, approved subject to 18-month reserves: $8,500 × 18 = $153k needed AFTER closing. Only have $250k total = $250k - $230k = $20k left (short $133k). Deal falls through. Should have asked reserve requirement upfront. Now scrambling to liquidate retirement accounts (penalties) or deal dies. Always verify reserves with each lender before applying.
✓ Better approach: Bought $800k home with 5% down ($40k) using conforming loan (approved). Now buying $1.2M home, attempted 5% down ($60k) with jumbo = denied (need 20% = $240k). Jumbo has stricter rules: higher down payment, better credit, more reserves, lower DTI. Can't treat like conforming. Spent months house hunting, made offer, lost $1,500 appraisal = all wasted. Research jumbo requirements before shopping.
✓ Better approach: $1M home, put 15% down ($150k) = $850k jumbo loan. Lender requires PMI 0.95% annually = $8,075/year ($673/month). Thought avoiding PMI < 20% only on conforming. Jumbo PMI exists, costs 2-3× conforming PMI. $850k loan + $673 PMI + higher 7.5% rate = $6,585/month total. Should have waited for 20% down = $800k loan @ 7%, no PMI = $5,322 (save $1,263/month).
✓ Better approach: Have $400k: $240k cash + $160k in 401k. Thought $160k 401k counts as reserves for jumbo = total $400k reserves (plenty). Lender: 401k doesn't count unless retired or 59.5+ years old. Only $240k qualifies - $240k down = $0 reserves (denied). Should have known vested 401k not liquid = doesn't count. Need actual cash, stocks, bonds in taxable accounts for reserves.
✓ Better approach: Applied with big bank: 7.5% jumbo rate, 24-month reserves, 720 minimum score. Barely qualified, expensive payment. Later found credit union: 6.875% rate, 12-month reserves, 700 score OK. $1M loan: 6.875% = $6,573/month vs 7.5% = $6,992 ($419/month difference = $150,840 over 30 years). Wasted $150k by not shopping. Always get 5+ jumbo quotes.
✓ Better approach: $25k/month income, 43% DTI = $10,750 max debts. Bought $1.5M home: $9,980 payment + $1,500 other debts = $11,480 (exceeds by $730, but lender approved at 45% with compensating factors). Budget crushed: $25k - $6,750 tax - $11,480 debts = $6,770 for everything else (food, utilities, kids, savings). Maxing jumbo DTI = house poor. Aim for 35% DTI, not 45%, on jumbo purchases.
✓ Better approach: Bought $1.5M home with $1.2M jumbo loan. Expected full mortgage interest deduction: $84k year 1 interest × 24% tax = $20,160 refund. Actual: $750k cap = $52,500 deductible × 24% = $12,600 refund ($7,560 less than expected). Tax planning assumed full deduction. Should have factored cap into affordability math. Many jumbo buyers hit this cap post-2017 tax reform.
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Financial Disclaimer
This calculator is provided for educational and informational purposes only. The results are estimates based on the information you provide and should not be considered as financial, legal, or tax advice.
Actual results may vary based on your specific circumstances, market conditions, and other factors. Always consult with qualified financial, legal, and tax professionals before making any financial decisions.
We make no guarantees about the accuracy, completeness, or reliability of the calculations. Use this tool at your own risk.