jumbo mortgage
Huge home loan
A jumbo mortgage is a home loan that exceeds the limits set by government-sponsored enterprises like Fannie Mae and Freddie Mac.
Because these loans can't be purchased by those agencies, lenders assume more risk and typically require higher credit scores, larger down payments, and charge higher interest rates: They needed a jumbo mortgage to buy in that neighborhood.
Maximum allowed debt amount
- conventional loanNon-government-insured home financing
- secondary marketExchange for existing securities
- Fannie MaeFederal mortgage corporation
- Freddie MacSecondary mortgage market corporation
debt-to-income ratio · credit score · underwriting · preapproval · interest rates · fixed-rate · adjustable-rate · amortization
Upscale, expensive residence
- estateProperty and grounds
- mansionLarge, stately home
- upscale neighborhoodProsperous residential district
- prime locationHighly sought real estate
appraisal · equity · housing market · residential · investment property · real estate · listing · broker
Preset standard option
- foreclosureLender seizes mortgaged property
- collateralSecurity for debt
- loan-to-valueDebt-to-collateral ratio
- debtMoney owed another
loan limit
Maximum allowed debt amount
- conventional loanNon-government-insured home financing
- secondary marketExchange for existing securities
- Fannie MaeFederal mortgage corporation
Freddie Mac · debt-to-income ratio · credit score · underwriting · preapproval · interest rates · fixed-rate · adjustable-rate · amortization · refinance
luxury home
Upscale, expensive residence
- estateProperty and grounds
- mansionLarge, stately home
- upscale neighborhoodProsperous residential district
prime location · appraisal · equity · housing market · residential · investment property · real estate · listing · broker · realtor
default
Preset standard option
- foreclosureLender seizes mortgaged property
- collateralSecurity for debt
- loan-to-valueDebt-to-collateral ratio