Jumbo Loans

expensive house with swimming pool in the front and the words 'jumbo loans' written on the pool waterFannie Mae and Freddie Mac impose loan limits.  The limits vary by state but what stays the same is that a loan that is above those limits is called jumbo.

Jumbo mortgages, besides the larger loan amount, are different in a few other ways from the conforming loans.:

    • the interest rate is higher
    • the minimum down payments are higher
    • reserves are always required.