Question:

Jumbo Mortgage Definition

Answer:

A jumbo mortgage is any loan exceeding the government loan limits for the area. Any loan that fits in the Fannie Mae limits is called a conforming loan. As of 2006 and 2007, Fannie Mae and Freddie Mac loan limits were set to $417,000 for single unit properties all over the US, except for Alaska, Guam, Hawaii and the Virgin Islands where limits were set to $625,500.

Any loan exceeding $417,000 would have been called a jumbo mortgage, and if it exceeded $650,000 it would have been called a super jumbo mortgage.

As of February 13, 2008 conforming limits are increased to $729,750 until December 31, 2008 to stimulate the housing market in the high cost areas.

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Common misspellings: mortage and morgage