When a jumbo mortgage balance can move into a conforming refinance
Has your jumbo loan become conforming?
Crossover answer
A loan that was jumbo when you bought can fit under the conforming limit years later, because FHFA raises limits as home prices rise and your payments lower the balance. If today's balance, plus any financed costs, is at or under your county's current limit, you may be able to refinance into a conforming loan with agency pricing and rules. Whether it saves money depends on rates and costs.
Last reviewed against the primary sources listed below.
ToolCrossover checkBalance against this year's limit.WhyLimits catch upYearly increases.CheckYour balance vs the limitDo the comparison right.OptionPaying downClosing a small gap.RouteThe switch refinanceNo cash out.CostCosts of switchingBreakeven first.StayStaying jumboWhen it is fine.New guideWhen limits changeThe yearly timing of conforming loan limit changes and how to plan a s.New guideValue and the switchWhy the appraised value matters when moving a loan from jumbo to confo.GlossaryKey termsPlain definitions with sources.
The number you need
Look up this year's limit for your county on FHFA's conforming loan limit table.