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Jumbo Mortgage

  1. Real Estate Dictionary
  2. J
  3. Jumbo Mortgage

A jumbo mortgage is a home loan where the loan value exceeds the conforming loan limits set by Fannie Mae and Freddie Mac, the government-sponsored entities who buy loans from banks and sell them on the secondary market. A loan that falls within those limits is known as a conforming loan.

Jumbo loans typically have higher interest rates or fees than conforming loans. Conforming loan limits are set each year by county.

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