What is a jumbo refinance?

What is a jumbo loan?

FHFA says Fannie Mae and Freddie Mac may buy single-family mortgages only when the origination balance is under a published conforming loan limit. FHFA calls a loan above that limit a jumbo loan. The limit depends on the county and on whether the property is 1, 2, 3, or 4 units.

The limit is a cap on the loan amount, not on the home price. 2026 limits for every Hawaii and California county are taken from FHFA. The agency page is the FHFA conforming loan limit table.

What is a rate-and-term refinance?

A rate-and-term refinance replaces your current mortgage with a new one and changes the interest rate, the repayment term, or both. You are not taking extra principal out of the house.

The Consumer Financial Protection Bureau describes a refinance as a new loan that pays off and replaces the old loan, and it has called non-cash-out refinances rate-and-term refinances. Closing costs usually apply. This page does not quote rates.

What is a jumbo cash-out refinance?

A cash-out refinance replaces your mortgage with a larger one, and you receive the difference in cash. It is a jumbo cash-out refinance when that new loan amount is above the county conforming limit.

Read the full explanation on the jumbo cash-out refinance page, including how the CFPB distinguishes it from a HELOC.

What are the 2026 conforming limits in Hawaii and California?

FHFA set the 2026 baseline one-unit limit at $832,750 for most of the United States, and the one-unit high-cost ceiling at $1,249,125. Hawaii uses a higher statutory baseline: $1,249,125 for one unit, with a one-unit ceiling of $1,873,675. No Hawaii county is at that ceiling in the 2026 county file.

Honolulu, Hawaii County, and Kauai are $1,249,125 for one unit. Maui and Kalawao are $1,299,500. In California, the one-unit limit is $832,750, $1,249,125, or a county figure in between. Open the county table before you decide whether a loan is jumbo.

Where does John arrange jumbo refinances?

Hawaii and California, through Loan Factory, Inc. The state pages cover property types that come up often in each place.

Why do homeowners refinance a jumbo loan?

• Change the rate or the term (rate-and-term)
• Take cash out of equity (cash-out refinance)
• Restructure a loan when income includes RSUs, bonus, or self-employment
• Review a VA IRRRL or VA cash-out if the borrower is eligible

Whether a refinance helps depends on the new terms, the closing costs, and how long you keep the loan. This is not a promise that a new loan will cost less.

Jumbo refinance questions

What is a jumbo refinance?

A jumbo refinance replaces your current mortgage with a new mortgage whose amount is above the conforming loan limit FHFA sets for the county and the number of units. FHFA calls a loan above that limit a jumbo loan.

What is the difference between a rate-and-term refinance and a cash-out refinance?

Both replace the current mortgage. A rate-and-term refinance changes the rate, the term, or both, without taking out extra principal. A cash-out refinance uses a larger new loan and you receive the difference in cash. The CFPB describes non-cash-out refinances as rate-and-term refinances.

What loan amount is jumbo in Hawaii in 2026?

For one-unit homes, the 2026 FHFA limit is $1,249,125 in Hawaii County, Honolulu County, and Kauai County, and $1,299,500 in Maui County and Kalawao County. A new loan above the limit for that county and unit count is jumbo.

What loan amount is jumbo in California in 2026?

For one-unit homes, the 2026 baseline is $832,750. The high-cost ceiling is $1,249,125. Ten counties are at the ceiling, 41 are at the baseline, and seven are in between. The county table lists each one.

Does a jumbo refinance have to be a cash-out?

No. A rate-and-term refinance is jumbo whenever the new loan amount is above the county conforming limit. Cash-out is a separate choice.

Equal Housing Opportunity. This is not a commitment to lend. Programs, rates, terms and conditions are subject to change without notice and subject to credit and property approval. Loan Factory, Inc. is a mortgage broker, not a direct lender.

Sources: FHFA, Conforming Loan Limits; FHFA news release, November 25, 2025; CFPB, mortgage key terms; CFPB research note on cash-out and rate-and-term refinances.