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Utah Jumbo Loan Rates & Limits
As of September 29, 2023,
- 30 year 5/6 ARM rate jumbo loans in Utah are % (% APR).
- 30 year 7/6 ARM rate jumbo loans in Utah are % (% APR).
- 30 year 10/6 ARM rate jumbo loans in Utah are % (% APR).
Imagine you’ve found the perfect home, but your loan amount is much higher than the conforming loan limits for your county in Utah.
Can you still get a mortgage on that property? Yes you can.
If you want to buy a home in Utah and your loan amount is higher than the conforming loan limits for your county, a jumbo loan might be the right option.
You’ll need great credit, a high income, a substantial down payment, and plenty of cash reserves.
If this describes you, a jumbo loan could help place you in the home of your dreams. Here’s what to know about jumbo loans from the mortgage professionals at City Creek Mortgage.
↓ Try Our Utah Jumbo Mortgage Calculator ↓
Jumbo Loans In a Nutshell
- A jumbo loan is a mortgage that allows qualifying buyers to purchase homes with loan amounts above the conforming and super-conforming loan limits set by the Federal Housing Finance Administration (FHFA).
- Credit, savings and income requirements for Jumbo Loans are more stringent than Conventional
- Since they’re used for purchasing homes exceeding the conforming loan limits, Fannie Mae and Freddie Mac can’t buy these loans from lenders, which makes them riskier for lenders.
- Jumbo loans typically have higher interest rates than conforming loans because of the risks lenders face.
- Jumbo loans are available as fixed-rate or adjustable-rate mortgages.
Jumbo Loan Limits By County
Jumbo loans are mortgages that exceed the conforming and super-conforming loan limits in Utah that are set by the FHFA and adjusted each year. The conforming loan limits for each county in Utah for 2023 are listed in the following table:
| County | One-family | Two-family | Three-family | Four-family |
| Beaver | $726,200 | $929,850 | $1.123.900 | $1,396,800 |
| Box Elder | $744,050 | $952,500 | $1,151,400 | $1,430,900 |
| Cache | $726,200 | $929,850 | $1.123.900 | $1,396,800 |
| Daggett | $726,200 | $929,850 | $1.123.900 | $1,396,800 |
| Davis | $744,050 | $952,500 | $1,151,400 | $1,430,900 |
| Duchesne | $726,200 | $929,850 | $1.123.900 | $1,396,800 |
| Emery | $726,200 | $929,850 | $1.123.900 | $1,396,800 |
| Garfield | $726,200 | $929,850 | $1.123.900 | $1,396,800 |
| Grand | $726,200 | $929,850 | $1.123.900 | $1,396,800 |
| Iron | $726,200 | $929,850 | $1.123.900 | $1,396,800 |
| Juab | $726,200 | $929,850 | $1.123.900 | $1,396,800 |
| Kane | $726,200 | $929,850 | $1.123.900 | $1,396,800 |
| Millard | $726,200 | $929,850 | $1.123.900 | $1,396,800 |
| Morgan | $744,050 | $952,500 | $1,151,400 | $1,430,900 |
| Piute | $726,200 | $929,850 | $1.123.900 | $1,396,800 |
| Rich | $726,200 | $929,850 | $1.123.900 | $1,396,800 |
| Salt Lake | $726,200 | $929,850 | $1.123.900 | $1,396,800 |
| San Juan | $726,200 | $929,850 | $1.123.900 | $1,396,800 |
| Sanpete | $726,200 | $929,850 | $1.123.900 | $1,396,800 |
| Sevier | $726,200 | $929,850 | $1.123.900 | $1,396,800 |
| Summit | $1,089,300 | $1,394,755 | $1,685,850 | $2,095,200 |
| Tooele | $726,200 | $929,850 | $1.123.900 | $1,396,800 |
| Uintah | $726,200 | $929,850 | $1.123.900 | $1,396,800 |
| Utah | $726,200 | $929,850 | $1.123.900 | $1,396,800 |
| Wasatch | $1,089,300 | $1,394,775 | $1,685,850 | $2,095,200 |
| Washington | $726,200 | $929,850 | $1.123.900 | $1,396,800 |
| Wayne | $726,200 | $929,850 | $1.123.900 | $1,396,800 |
| Weber | $744,050 | $952,500 | $1,151,400 | $1,430,900 |
As you might notice, the conforming loan limit for a one-unit home is $726,200 in every county in Utah other than the following six:
- Box Elder
- Davis
- Morgan
- Summit
- Wasatch
- Weber
These counties are high-cost-of-living areas and so have higher limits than the standard conforming loan limits that are referred to as super-conforming loan limits.
For example, if you want to buy a home in Salt Lake City with a price of $1 million, you’ll either need to put enough down to bring your loan amount below the standard conforming loan limit of $726,200 or get a jumbo mortgage to complete the transaction.
What are Jumbo Loans? How Do They Work?
A jumbo loan is a mortgage loan offered by certain banks and other lenders that allows certain buyers to purchase homes for prices exceeding the conforming and super-conforming loan limits in their counties.
Freddie Mac and Fannie Mae don’t purchase jumbo loans from lenders.
Jumbo loans aren’t backed by any guarantees, so lenders that offer them frequently have significantly more stringent qualifying requirements than the requirements for conventional mortgages or government-backed loans.
To qualify for a jumbo loan, most lenders will require you to meet the following criteria:
- High credit score of at least 700, although some lenders might require 720 or higher
- Debt-to-income (DTI) ratio of 40% to 45% or less unless you have substantial cash reserves
- Some loans may require documentation demonstrating your financial health and stability
- Additional home appraisals might be needed
- Larger minimum down payment of at least 10%, although some lenders might require a downpayment of 25% to 30%
A great benefit of jumbo loans is they allow people to buy homes where your loan amount exceeds conforming loan limits. They can also use jumbo loans to purchase investment properties, vacation homes, or second homes.
Jumbo Loans Since 2017 to Now
The average interest rates for jumbo loans have fluctuated from 2017 to now, but they are significantly higher today than they were at the beginning of 2017. For example, the mortgage interest index for jumbo loans on Jan. 3, 2017, was 4.432%.
Along with other mortgage interest rates, those for jumbo loans plummeted during the height of the COVID-19 pandemic to reach a low of 2.822%. Over the last couple of years, the mortgage interest index for jumbo loans has significantly increased with inflation, reaching 6.370% as of April 14, 2023.
Jumbo Loan National Interest: How Utah Compares
Interest in jumbo loans varies from state to state. As revealed by Google Trends, the top five states with searches for jumbo loans include the following:
- 1. Kansas
- 2. Hawaii
- 3. Washington, D.C.
- 4. New York
- 5. California
While Utah wasn’t in the top five, it is number eight on the list. This means that if you’re interested in a jumbo loan in Utah, you’re certainly not alone.
Getting the Jumbo Mortgage You Want
If you have excellent credit, enough cash reserves to make your mortgage payments for a minimum of 12 months, a high income, and are in excellent financial health, you might qualify for a jumbo loan.
Getting a jumbo loan might allow you to purchase a much more expensive home than you could otherwise buy and get all of the features you desire.
Jumbo loans are available in fixed-rate and adjustable-rate mortgages. A fixed-rate jumbo loan will have predictable payments because the interest rate will remain the same for the life of the loan.
An adjustable-rate jumbo loan will have an initial fixed period followed by adjustments on a regular, periodic schedule based on the interest rate index at that time.
Below are three popular types of jumbo ARMs that you might consider, depending on your financial priorities and goals.
Jumbo Loan 5/6 ARM
A 5/6 ARM jumbo loan will have an initial fixed period of five years. During this time, your interest rate will not be adjusted, so your payment will remain the same.
Once the initial five year fixed period is over, the interest rate for your 5/6 ARM jumbo loan can be adjusted every six months based on the mortgage interest index at that time. The rate could be adjusted upward or downward during each adjustment period, meaning your payments could be unpredictable.
Jumbo Loan 7/6 ARM
A jumbo loan 7/6 ARM has an initial fixed period of seven years, during which your interest rate will be fixed, and your payments will not change. Once that seven period is over, your rate can be adjusted upward or downward every six months for the remaining life of your mortgage.
Jumbo Loan 10/6 ARM
If you get a jumbo loan 10/6 ARM, the initial fixed period will be 10 years followed by periodic adjustments of your interest rate every six months.
Jumbo Adjustable Rate vs Jumbo Fixed Rate
Jumbo ARMs typically have a lower initial rate of interest than fixed-rate jumbo loans, which can make a jumbo ARM attractive to buyers with a higher risk tolerance. Jumbo ARMs come with caps on how much your interest rate can be adjusted initially, periodically, and over the life of your mortgage.
If you decide to close with a Jumbo ARM, it’s a good idea to consider the interest rate caps to determine whether you can afford them in case your mortgage interest rate is adjusted up to the lifetime cap.
The typical strategy with a Jumbo ARM is to refinance it or sell your home before the initial adjustment period. If you’re intending to sell your home, or refinance within a few years, choosing a jumbo ARM might make the most sense–because you could save money on interest vs. a fixed-rate mortgage until you sell the property.
Why are Jumbo Loan Rates Higher Than Conventional Loans?
Jumbo loan rates tend to be slightly higher than conventional mortgages because of the higher risks that lenders face.
Unlike conventional mortgages, Fannie Mae and Freddie Mac can’t service jumbo loans.
If someone with a conventional mortgage defaults on their loan, Freddie Mac and Fannie Mae will buy the defaulted loan from the lender. By contrast, if someone with a jumbo loan defaults, whichever entity owns the loan at the time will bear all of the loss.
This is why lenders have more stringent qualifying requirements for borrowers who want to get jumbo loans than for those who want to buy a home with a conventional mortgage. They also typically charge higher rates of interest for jumbo loans than for conventional or government-backed mortgages.
Can I Qualify for a Jumbo Loan With a Lower Down Payment?
If you want to buy a home that exceeds the conforming or super-conforming loan limit in your county with a mortgage, you’ll be expected to have a larger down payment than for a different type of mortgage.
Lenders typically require a minimum of 10% down for jumbo loans. However, some lenders require a minimum down payment of 25% or more to purchase a home with a jumbo loan.
Some lenders also expect you to have enough money in your cash reserves to afford your mortgage payments for at least 12 months.
Will I Be Able To Refinance a Jumbo Loan?
While it’s possible to refinance a jumbo loan, lenders are much pickier when deciding whether to approve a refi of a jumbo mortgage vs. another type of home loan.
Your mortgage broker might need to help you search for a lender willing to refinance a jumbo loan for you. You can anticipate needing a higher credit score based on your loan type (fixed vs. ARM), loan length, and property type.
Your DTI will also need to meet the lender’s requirements for a jumbo loan refi.
Is there a Jumbo VA loan?
If you are a military veteran who is eligible for a VA loan, you can get a VA jumbo loan with multiple advantages and benefits over standard jumbo mortgages.
VA loans don’t have a maximum limit for those with full entitlement, are backed by the Department of Veteran Affairs, and have lower interest rates and down payment requirements.
If you have full entitlement, the VA will back the same percentage of your mortgage regardless of its size.
If you have partial entitlement, lenders will typically determine a loan maximum based on one of the two following formulas:
- With a down payment – (Entitlement you have left + Your down payment/equity) multiplied by four
- Without a down payment – With partial entitlement and no down payment, your maximum VA loan amount will be the amount of your remaining entitlement multiplied by four.
VA jumbo loans have looser credit and down payment requirements, but they can only be used to purchase a primary residence. The home must also pass safety inspections.
Jumbo Loans Through Mortgage Brokers vs Lenders
Is it better to get a jumbo loan through a lender, bank, or mortgage broker?
If you’re looking for a jumbo loan, an experienced mortgage broker can find multiple offers from different lenders, allowing you to compare terms and interest rates and find the best deal. The mortgage experts at City Creek Mortgage can help you compare terms and rates and identify the jumbo loan that will best meet your needs and goals. Since transparency is important, you’ll also receive a comprehensive, accurate estimate of the various closing costs you might have to pay with each offer. Contact City Creek Mortgage today by calling 801-501-7950 to schedule an appointment and learn more about whether a jumbo loan is the best choice for you.
City Creek Mortgage
11910 South State Street #100, Draper
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Pete, Sefa, and Ivie were incredible in their support throughout the entire process. They went above and beyond providing counsel and guidance. Thanks to their highly coordinated and diligent efforts we were able to rapidly move through … More the process. Highly impressed with the outstanding service. Strongly recommend!
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Alexis is truly outstanding! I have utmost confidence in her ability to handle my clients' mortgage requirements, and she is my go-to person for all of my own mortgage needs. She is consistently accessible and swift in responding to … More any inquiries or worries. Working with Alexis and her team is an absolute delight. Without any reservations, I highly recommend her for all of your mortgage needs.
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I can’t express how happy I am with Troy and his team! I have had 12 real estate transactions in my life so far and I have never used a mortgage company or real estate agent twice. I am used to being the one driving the process because … More the others couldn’t do their job. Troy was so helpful throughout the whole process, he even found me a real eater agent in Idaho that turned out to be the best real estate agent I have ever worked with. Troy, Nicole, and Sefa communicated with me regularly and I never once had to call them for an update. They also communicated with my real estate agent throughout the whole process as well. I will forever use these guys. I don’t know if everyone at City Creek is as good as Troy but you have to call him first. My loan was ready to go several days before closing. The process was so smooth and efficient.
