Jumbo Loan Defined:
Jumbo loans are loans larger than the limits set by Fannie Mae and Freddie Mac.
Jumbo Loan Limit:
Jumbo loan limits are reviewed annually.
For 2008 the limits are:
- Single family home: $417,000
- In Alaska, Guam, Hawaii, Virgin Islands: $625,000
The Price of a Jumbo Loan:
These monstrous mortgages get you more money, but you have to pay a price.
A jumbo loan's interest rate might be 0.25% or 0.50% higher than the rate on a conforming loan.
