A Jumbo Mortgage is a mortgage with a loan amount above conventional loan limits. Jumbo Mortgages apply when Fannie Mae (FNMA) and Freddie Mac (FHLMC) limits don't cover the full loan amount
Fannie Mae and Freddie Mac are large agencies that purchase the bulk of residential mortgages in the U.S. They set a limit on the maximum dollar value of any mortgage which they will purchase from an individual lender.
Currently, this limit is $729,750*.
The average interest rates are typically greater than normal for conforming mortgages, and vary depending on property types and mortgage amount.
*This is a temporary change – loans amount limits will return to $417,000 as of December 31, 2008 – ACT NOW
