Jumbo Loans

Conventional loans that are too large for government agencies are called jumbo loans. Jumbo loans refer to those loan amounts outside of the “conforming” range or, above $417,001 for single/family/condo, primary residence, second homes, and commercial. A Jumbo or Non-Conforming Mortgage Loan is any mortgage that exceeds the conforming loan limit of $417,000. Jumbo loans, like conforming loans, are available as fixed rate mortgages or as ARMs. Typically, jumbo loans are priced slightly higher than conforming loans due to the limitations of the Jumbo Loans secondary market. Rates on jumbo loans tend to be slightly higher than loans of a lesser value, because lenders generally have a higher risk on these loans.