Jumbo mortgages are home loans that exceed conforming loan limits imposed by Fannie Mae and Freddie Mac, the two government-sponsored enterprises that buy mortgages from lenders.
In most (but not all) U.S. counties, any mortgage of more than $417,000 is a jumbo loan -- and jumbo mortgages have higher interest rates than smaller loans. In about 200 counties with high home prices, borrowers are able to get mortgages for up to $625,500 without paying the higher jumbo interest rates.
There are perks to a jumbo mortgage. For example, jumbo loan rates have reached historic lows, and interest on loans up to $1 million is tax-deductible.
Read on for more information about jumbo mortgages and jumbo loan limits.
- What is a jumbo mortgage?
A jumbo mortgage certainly isn't your conventional home loan. It's bigger. Find out who qualifies.
- Jumbo mortgages: Low rates, strict terms
Borrowers who need large home loans will find an increasing number of jumbo mortgages at low rates and strict terms.
- Map: Jumbo loan limits
What are the jumbo loan limits in your state? Check out this map for FHA loan limits and Fannie-Freddie conforming limits.
- Jumbo ARM has lower payments -- at first
When getting a jumbo mortgage, that long-term safety means much higher monthly payments than an adjustable-rate mortgage would offer.
- Million-dollar homes for sale
Take a peek at million-dollar homes for sale in five major U.S. housing markets.
- Video: Taking on a jumbo mortgage
How is a jumbo mortgage different from a regular conforming mortgage?
More From Bankrate.com