Jumbo Mortgage

A loan for an amount exceeding the statutory limit placed on the size of loans that freddie mac and fannie mae can purchase. Such loans must be maintained in the lender’s portfolio or sold to private investors rather than Fannie or Freddie. These loans are often sought for purchase of luxury homes.
See also nonconforming loan.

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A loan for an amount exceeding the statutory limit placed on the size of loans that freddie mac and fannie mae can purchase. Such loans must be maintained in the lender ’s portfolio or sold to private investors. These loans are typically required for purchase of luxury homes.
See also nonconforming loan.


Example: Not all lenders offer jumbo mortgages and those that do may charge a higher interest rate for the loans.

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Next:	Junior Mortgage, Junk Fees