What is it?
A jumbo mortgage is a loan for a high-priced property that's above the limits of a conventional loan, $417,000 in most parts of the country.
Advantages of a jumbo loan
- It allows you to buy a home in more expensive parts of the country where $417,000 is a more average price.
Disadvantages of a jumbo loan
- You generally have to pay a higher down payment.
- Most lenders require a higher credit score and a lower debt-to-income ratio than they would for other loans.
Is it right for you?
A jumbo loan might be a good option for someone who:
- lives in an area with high real estate values
- has a stable income to make the loan payments
- has the necessary credit and debt-to-income ratio to qualify
What would your mortgage payment be if you got a jumbo loan? Use our mortgage calculator to find out.