What is a Jumbo Mortgage?

A jumbo mortgage is just what it sounds like – a big mortgage. It is a jumbo mortgage if the amount of the loan is more than $417,000 in the continental United States. This limit is set by two agencies (Fannie Mae and Freddie Mac) through 2010. A jumbo loan is a little harder to get and comes with an interest rate a quarter to a half percent higher than normal. The limits of such jumbo mortgages are set to expire in 2010 and will have to be revised.