The short answer: not usually. APR rates for these loans used to be higher than conforming mortgage rates, but they have evened out of late. Reasons for Higher Rates Jumbo APRs are occasionally higher due to a few factors: Who is lending the money Market conditions Borrower’s financial status Note* Market conditions can also cause these mortgages’ APRs to be lower than conforming loans’. Closing Costs Since these loans involve a greater sum of money, closing costs may also increase. Higher risk means there will be more qualifying factors than conforming loans. Since the underwriting will take longer and require more thorough review, you should discuss closing costs with your lender and account for a potentially higher expenditure come closing time.