A jumbo loan is any loan whose amount exceeds conforming guidelines. Conforming loans, which typically have the best interest rates and loan terms in the market, are loans sold to federally chartered agencies—such as Fannie Mae and Freddie Mac. Such loan must satisfy or "conform" to these agencies' guidelines in order to be purchased.
For a discussion on conforming and non-conforming loans, please see the Conforming Loan Programs and Nonconforming Loan Programs articles in this section.
This article will review the current conforming limits, as well as discuss their mechanics and money-saving alternatives.
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