A jumbo loan is a mortgage that exceeds the conforming loan limits set by Fannie Mae and Freddie Mac. Conforming loan limits vary by county, but in most areas, the limit for a single-family home is $647,200 in 2023. Loans that exceed this limit are considered jumbo loans.
Jumbo loans typically have higher interest rates and fees than conforming loans. This is because jumbo loans are considered to be riskier for lenders. However, there are several things you can do to avoid taking out a jumbo loan.
