Definition
A mortgage that meets the guidelines set by Fannie Mae and Freddie Mac, including maximum loan amounts ($766,550 in most areas for 2026). Conforming loans typically offer the best interest rates because they can be sold on the secondary market. Loans exceeding conforming limits are called jumbo or non-conforming loans.
Related Mortgage Terms
- Fannie Mae
The Federal National Mortgage Association (Fannie Mae) is a government-sponsored...
- Freddie Mac
The Federal Home Loan Mortgage Corporation (Freddie Mac) is a government-sponsor...
- Jumbo Loan
A mortgage that exceeds the conforming loan limits set by the Federal Housing Fi...
- Amortization
The process of paying off a mortgage through regular monthly payments of princip...
- Annual Percentage Rate (APR)
The total annual cost of a mortgage expressed as a percentage, including the int...
Understanding mortgage terminology helps you compare loan offers and make informed decisions. Use our mortgage calculator to see how these terms affect your monthly payment.