Explore the Mortgage101 Library
Check Local Mortgage Rates
Loan Program Choices
Use our calculator to find out your estimated monthly payment in advance: Enter the loan amount, interest rate, and length of mortgage.
Try our Mortgage Payment Calculator
Jumbo mortgages are loans that have loan amounts that are greater than $417,000. The limit is set by Fannie Mae and Freddie Mac, and can vary, depending on their rules. This type of loan carries a higher interest rate than a conventional mortgage, because a jumbo mortgage is considered a higher risk loan. Many lenders require a large down payment for these types of loans.
If you are buying a home and financing more than $417,000, check with your lender to see if your area allows for a larger amount. Ask them what down payment is required in order for you to qualify for the loan. Once you know the amount the lender wants, you may still need a larger down payment to be sure the monthly payments are affordable.
If you are unable to get a jumbo loan, you may be able to purchase the home if you can arrange for a second mortgage. Your lender would finance your first mortgage for an amount below the jumbo limit, and then issue you a second mortgage for the remainder of the amount. Second mortgages are hard to find in difficult economic conditions, so plan to save.
- Second Mortgages: Advantages and Disadvantages
- How to Get Approved for an FHA Loan despite Bad Credit
- Low Down Payment Loan Qualification
- Should You Refinance? Make Sure the Timing is Right
- 3 Factors that Can Negatively Affect Your Mortgage Application
- FHA Eligibility with Bankruptcy and Foreclosure
- What To Do When Mortgages Default
- FHA Loans for a First-Time Home Buyer
- What Lenders Don't Reveal About Home Equity Loans