Definition
A mortgage that exceeds the conforming loan limits set by the Federal Housing Finance Agency ($766,550 in most areas for 2026). Jumbo loans are not eligible for purchase by Fannie Mae or Freddie Mac, so they carry slightly higher rates and stricter qualification requirements including higher credit scores (700+), larger down payments (10-20%), and more cash reserves.
Related Mortgage Terms
- Conforming Loan
A mortgage that meets the guidelines set by Fannie Mae and Freddie Mac, includin...
- Non-Conforming Loan
A mortgage that does not meet the guidelines set by Fannie Mae and Freddie Mac f...
- 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...
- Appraisal
A professional assessment of a property's market value conducted by a licensed a...
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.